DanaB27
Expert Alumni

Retirement tax questions

No, they are different.

 

If you make an excess contribution you have to withdraw the excess contribution plus the earnings by the due date of your 2022 tax return to avoid the 6% excess contribution penalty. For this withdrawal, you would get Form 1099-R with codes P and J in box 7 and it would have to be reported on your 2022 tax return. Only the earnings will be taxable.

 

If you take a regular distribution then your Form 1099-R can have the codes Q or T (since you seem to be over 59 1/2) in box 7 and you would report it on your 2023 return. A Qualified Distributions distribution won't be taxable. Furthermore, you can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. 

 

@mmttxcomm

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