DanaB27
Expert Alumni

Retirement tax questions

If you entered this as a nondeductible IRA contribution and correctly created Form 8606 you will have $2,000 on line 4a and $5 on line 4b. But I suspect that you answered that you withdrew the excess contribution by the due date during the IRA interview.

 

To verify, did you make the traditional IRA contribution in 2022 for 2022 and withdraw it in 2022? It seems you made a regular withdrawal and did not request the withdrawal of excess contributions and earnings. Was the traditional IRA empty after the withdrawal?

 

It seems if you enter it as a nondeductible contribution and don't enter anything as withdrawn by the due date then you will have the 6% excess contribution penalty calculated On Form 5329 (unless your traditional IRA was empty on December 31, 2022) but you will only have the $5 earnings on line 4b.

 

If you state that you withdrew the excess contribution during the IRA contribution interview TurboTax will not create Form 8606 and you will have $2,005 on line 4b.

 

It seems you will need to talk to your financial institute to get a corrected Form 1099-R as DavidD66 suggested. It is important that they issue a Form 1099-R with the correct codes for the withdrawal of excess contribution plus earnings.

 

@crw636
 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"