Get your taxes done using TurboTax

First, you should report the Roth IRA contribution in TurboTax because you will be given the options onscreen for what you intend to do to correct the excess contribution.  Once you have indicated that you will remove the excess before the due date of your return, there will not be any 6% penalty imposed.  

When entering the Form 1099-R for a return of an excess Roth IRA contribution plus earnings you need to use code J with code P.  Code P will say in the drop-down menu that it is taxable in 2024, but follow-up information will indicate that it is taxable in 2025 instead.  

Since you made the excess contribution in 2025 and withdrew the 2025 excess Roth IRA contribution plus earnings in 2026 before the due date, then you will get a 2026 Form 1099-R in 2027 which should have codes P and J.  This 1099-R will have to be included on your 2025 tax return and you have two options:  

• Amend your 2025 return after you actually have your 2026 Form 1099-R in hand. 

OR

• You can report it now in your 2025 return and ignore the 1099-R when it comes unless there is Box 4 Federal Tax withholding and/or Box 14 State withholding.  Then you must enter the 2026 Form 1099-R into the 2026 tax return since the withholdings are reported in the year that the tax was withheld.  The 2026 code P will not do anything to the 2026 tax return income but the withholdings will be applied to 2026.

If you wish to report the Form 1099-R now as part of your 2025 return without amending it later, go to the use these steps:  

• Go to Wages and Income > Retirement Plans and Social Security > Form 1099-R section of your return to add a Form 1099-R
• Select "I'll type it in myself"
• Box 1 enter total distribution (contribution plus earning)
• Box 2a enter the earnings
• Box 7 enter J and P
• Click "Continue"
• On "Is the IRA/SEP/SIMPLE box on this 1099-R checked?" screen answer "No, the box is blank"?
• On the "Which year on Form 1099-R" screen say that this is a 2026 Form 1099-R.
• Click "Continue" after all 1099-R are entered and answer all the questions.
• Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Corrective distributions made before the due date of the return".

See the following TurboTax help article to learn more:

What happens if I made an excess Roth IRA contribution because my modified adjusted gross income is ...