DanaB27
Expert Alumni

Get your taxes done using TurboTax

If you had taxes withheld then you will need to enter the 2024 Form 1099-R with codes J and P also on your 2024 return to get the taxes applied to 2024. The 2024 code P will not do anything to your income to the 2024 tax return income but the withholdings will be applied to 2024.

 

The correct way to the report the earnings on your 2023 return would have been to enter a Form 1099-R and then TurboTax would have entered the earnings on line 4b of Form 1040, fill out Form 5329 part I to include exception code 21 Corrective distributions of the income on excess contributions distributed before the due date of the tax return (including extensions) on line 2, and create an explanation statement.

 

Amending your 2023 return would not change the tax due, therefore, it isn't necessary to amend your 2023 return. Just make sure you keep everything for your records.

 

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