Hi Dana B27,
Yes, I made the contribution in November 2024 and withdrew the excess with earnings in February 2025. Charles Schwab financial institution told me there would be three codes: 1, P, and 8. When I spoke with a representative, he said Code 1 was because I had opted to withhold taxes.
I don't know how many 1099-R's they will issue in 2026, but it sounds like there will be 3 codes.
Going with the second option you presented, should I include the gross amounts in my 2024 return now and then do the tax withholding portions in the 2025 return? For example, in 2024, I could say X amount in Box 1 and X in Box 2A (indicating codes 1 and 8 are taxable), then in 2025, say X amount in Box 1 and 0 in Box 2A (meaning I already paid taxes). I think the software would allow that.
Unless you see a problem with it, I would do three 1099-R entries, one for 1, one for 8, and one for P, when filing my return in order to mimic what the bank told me and keep it clear on the software. I think that would be best, but am open to learning differently.
