dmertz
Level 15

Retirement tax questions

[Edit]

 

Sorry, I missed that you did a regular distribution of $4,500 in 2022 to resolve the excess, not a return of contribution.  If you have no other money in Roth IRAs, your excess has been fully resolved.

 

Enter the Form 1099-R exactly as received; do not modify the amount in box 1.  When you tell TurboTax that you had no other money in Roth IRAs at the end of 2022, the excess has been resolved and TurboTax will prepare 2022 Form 5329 Part IV to show that your penalty for 2022 is zero.  (Form 5329 line 24 might still show $1,500, but you can eliminate that by indicating that you have no excess contributions next year when preparing your 2023 tax return.)