I have a question regarding how to fill out Form 1099-R for the removal of my excess Roth IRA contribution.
Here is the timeline of events:
January 2024 – Contributed $7,000 to my Roth IRA.
December 2024 – Recharacterized $8,539 from my Roth IRA to a Traditional IRA.
March 2025 – The excess contribution amount was determined to be $7,000. The total applicable earnings/loss for the computation period was (-$250.06), and the total amount to be returned to me was $6,749.94.
I received a 1099-R for the recharacterization in January 2025, and I will received a separate 1099-R for the excess contribution removal in early 2026. Instead of amending my 2024 tax return, I plan to report this on my 2024 tax return.
Here are my questions regarding how to properly fill out Form 1099-R for the excess contribution removal:
Box 1 – Should I enter $7,000 (the original excess contribution amount) or$6,749.94 (the amount actually returned after accounting for the loss)?
Box 2a – Since I had a loss, should I enter $0?
Box 7 – Should I use codes J and P?
I would appreciate any clarification on how to report this correctly.
Fidelity informed me that although there is still a remaining balance in my Traditional IRA after the excess contribution removal, that portion is not considered an excess contribution and therefore was not withdrawn. They also stated that as long as the remaining amount stays in the Traditional IRA and is not withdrawn, it does not affect my tax return.
Is this correct?
Thank you!
