@DanaB27 wrote:
Code 8J indicates a return of excess contributions plus earnings. The earnings are taxable and listed in box 2a. If you removed the contribution plus earnings before December 29th, 2022, and are under 59 ½ then the earnings are also subject to the 10% early withdrawal penalty.
Yes, you can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. And that is why TurboTax asks you about your net contributions prior to 2022 and the conversions. But when you request the return of excess contributions plus earnings then the earnings will be taxable income. Please see Withdrawal of excess contributions for details.
- Login to your TurboTax Account
- Click on the "Search" on the top right and type “1099-R”
- Click on “Jump to 1099-R”
- Answer "Yes" to "Did you get a 1099-R in 2022?"
- Enter Form 1099-R
- Click "Continue" after all 1099-R are entered and answer all the questions.
- Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Another reason" if you are over 59 1/2 (if you are under 59 1/2 and removed the excess on/after December 29, 2022, then enter it next to "Corrective Distributions made on or after December 31, 2022")
For 7, I removed excess contributions before December 29, 2022 (on Feb 20, 2022) and I am in my 30s, what shall I enter?
