Take a look at the list of codes and you will see the issue.
- Code 8 let's the IRS know that this is the distribution of an excess that is taxable in 2024.
- Code 1 is early distribution which is not correct.
- Code J is early,
- Code P is excess.
Your form could have 1 or 2 of the boxes filled. Since you are making your own form, code 8 is fine or 8P. You will need to keep the paper trail for your records. I want to urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s, your carryover information, and proof of your basis in your various investments. You must keep tax records from the time you purchase until sold/ loss used plus 3 years. It is very easy to lose track of disallowed losses, carryforwards, and basis. This can be a digital or paper notebook.
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