DanaB27
Expert Alumni

Retirement tax questions

Yes, you can delete the incorrect excess contribution entry on your 2023 return since you verified that you did not have a 2022 Form 5329 and 2022 Schedule 2 with line 8. You do not have an excess contribution since you removed all contributions by the due date of the return. You do not have to pay a 6% penalty for 2023. Please delete the excess contribution entry during the interview.

 

Since I cannot see your return I cannot say why you show a prior year excess contribution in your 2023 return but don't show anything on your 2022 return. 

 

You only need to entered the Form 1099-Rs with code J8 on your 2023 tax return. The Form 1099-Rs with code PJ belong on your 2022 tax return but you had no earnings so there won't be a taxable event and you do not need to amend your 2022 tax return. If you already entered them on your 2023 return then the code P will tell TurboTax that they belong on the 2022 return, therefore you don't need to delete them.

 

[Edited 2/24/2024 | 2:30pm PST]

 

@RMSch1061 

 

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