My husband made excess contribution of $7,500 to his Traditional IRA on February 2, 2024, to be applied to our 2023 tax return. We were over the AGI limit. I just caught this on February 21, 2024, in prep for 2023 taxes. When preparing our return in TurboTax created a Traditional Nondeductible IRA FORM 8606 telling us that he was eligible. He has successfully requested the excess and gains from JP Morgan Chase in 2024. How do I handle this in TurboTax? Do I say "yes" He made a Nondeductible IRA excess contribution or "no" because I have pulled it back before I filed? Do need to report on the 2023 return or can this be reported on the 2024 return with the 1099-R? Also, if have to report in 2023 how do I handle the gain for the excess? The $7,500 contribution was all made in 2024. I was told I will not get a 1099-R till next year because the distribution for pulling back our excess $7,500. + Gains happened in 2024. Thank you.
