I have an IRA. In February 2024, I contributed $7,500 to the IRA with the intention of deducting the amount from my 2023 income on my 2023 return. However, since I had no W-2 income for 2023, I realized in March of 2024 that I needed to have that $7,500 redistributed to me. I received the distribution from the IRA in March of 2024. In June of 2024 I received a payout of $20 to take care of the minor bit of earnings on the $7,500 while the money was in the IRA. On my 2023 tax return, I did not take the deduction for the February 2024 contribution.
In February of 2025, I received a 2024 1099 R for $7,520, listed in Box 1. The taxable amount in Box 2a is listed as $20, which is the return generated during the time the IRA held the $7,500 in February/March of 2024. So, I input the 1099R on my 2024 return in TurboTax, and I receive a warning that the earnings are for a contribution I made in 2023, so I may need to amend my 2023 return. However, the earnings are for the period in February and March of 2024.
I noticed that if I select 2025 as the year of the 1099R the question goes away, and I assume the $20 income would show on the 2024 return.
So, how do I handle this and get the $20 of earnings reported in 2024? Do I amend my 2023 return for earnings in 2024? If so, how would I report the contribution, and re-distribution of the $7,500 on the 2023 amended return since I didn't contribute it in 2023 nor did i receive the re-distribution in 2023?
I believe I should report the $20 on my 2024 return. How do I go about doing this? I am over 65, so early withdrawal penalties would not apply. Or is this something I would need to take up with the IRA?
