After you file

To correctly amend your 2024 return in TurboTax, you should not create a Form 1099-R because it does not apply to your 2024 return.

Instead, you will update your IRA contributions section to report your earnings, which are taxable income on your 2024 return.

TurboTax makes it easy for you to file an amendment. Here is a link on how to proceed with the amendment in TurboTax.

Once you begin your amendment:

1. Go to Deductions & Credits, Select Traditional and Roth IRA Contributions, then Start
2. Enter the original amount of $5,000
3. Answer the income limit questions and TurboTax will calculate that you were only allowed to contribute $500
4. Next, you will be alerted about the penalty for early withdrawal
5. TurboTax will then generate Form 5329 and calculate the penalty amount
6. In your explanation statement, you will explain that you are amending to report the return of an excess 2024 Roth IRA contribution and related earnings which were distributed in 2026.

For your 2025 tax return:

Since the correction took place in 2026, for your 2025, you will not need to report the 2024 correction. You will proceed with your 2025 contributions as normal, ensuring you stay within the income limits.

For your 2026 return:

When you receive your Form 1099-R in 2027, look for the Box 7 Code to ensure it has a J. 

[edited 3/1/2026 12:00 p.m.] @rajohns