MinhT1
Expert Alumni

Get your taxes done using TurboTax

As your modified MAGI is more than $240k, you cannot contribute to a Roth IRA. So the entire contribution of $2,400 is excess contribution.

 

Please read this IRS document.

 

After you have requested the withdrawal of the excess contribution and the related earnings (before April 15, 2025), you enter on your 2024 tax return a form 1099-R (that you create) as I explained in my first answer with code PJ in box 7. In the follow-up interview in TurboTax, you'll have question asking if this 1099-R is for 2024 or 2025. Reply that it is for 2025 as this 1099-R is the replica of the 1099-R which you'll receive in 2026 for 2025.

 

In 2026, when you receive the 1099-R for this withdrawal from your broker, there is nothing to report on your 2025 return, as everything has been done in 2024.

 

Also in TurboTax, if you have already entered the contribution to your Roth IRA of $2,400, go back to that section and delete it, as you would have already withdrawn it.

 

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