Hi. I over contributed to my Roth IRA in 2017, and I had just recently discovered this mistake and withdrew the contribution ($5,500) in Dec 2019. I received 1099-R with code J. How do I report this in TurboTax Premier?
I had also mistakenly made an excess Roth contribution (of $6,000) for tax year 2019, which I have recharacterized in Dec 2019. This is code N on the 1099-R.
After entering information for the 2019 and 2017 excess contributions, TurboTax is now showing a $500 "Traditional and Roth IRA Contributions" in the "Retirement and Investments" section on the following screen:
- Federal Taxes > Deductions & Credits
But I did not make a $500 IRA contribution in 2019. I think TurboTax is subtracting the 2017 excess contribution withdrawn ($5,500) from the 2019 excess contribution recharacterized ($6,000), causing this erroneous $500 IRA contribution amount.
How should my situation be reported in TurboTax so that this erroneous $500 doesn't show up?
This is how I've entered my info in TurboTax for the following interview questions (which I noticed was asked twice in the software; once in the "Wages & Income" section and again in the "Deductions & Credits" section).
- Whether I withdrew from Roth IRA before 2019. (I answered 'Yes' due to the 2017 excess contribution)
- Enter Prior Year Roth IRA Contributions (I entered $11,500, which is the sum of the $5,500 contributed in 2017 and 2018 each + $6,000 contributed in 2019)
- Enter excess roth IRA contributions from prior years. (I entered $5,500 from 2017)
