Retirement tax questions

To confirm the Form 1099-R only has code J in box 7 and not code P and J? Did you withdraw the earnings with the excess contribution or only the excess contribution?

If you withdrew the excess contribution plus earnings then you could file a substitute Form 1099-R with codes P and J on your 2022 amended tax return:

1. Login to your TurboTax Account 
2. Click on the "Search" on the top right and type “1099-R” 
3. Click on “Jump to 1099-R”
4. Answer "Yes" to "Did you get a 1099-R in 2023?"
5. Select "I'll type it in myself"
6. Box 1 enter total distribution (contribution plus earning)
7. Box 2a enter the earnings
8. Box 7 enter J and P
9. Click "Continue"
10. On the "Which year on Form 1099-R" screen say that this is a 2023 Form 1099-R.
11. Click "Continue" after all 1099-R are entered and answer all the questions.
12. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Corrective distributions made before the due date of the return".

Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2021" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2022.

If you withdrew only the excess contribution without earnings then you will have to report the Form 1099-R with code J on your 2023 tax return. 

1. Click on "Search" on the top and type “1099-R” 
2. Click on “Jump to 1099-R” and enter all your 1099-Rs
3. Click "Continue" on the "Review your 1099-R info" screen after you entered all you Form 1099-R
4. Answer "Owned Any Roth IRA for Five Years?" screen
5. Continue through the questions and make sure you enter the net contributions prior to 2023 on the "Enter Prior Year Roth IRA Contributions" screen (include the excess contribution for 2022)
6. On the "Do you have any Excess Roth Contributions" answer "Yes"
7. On the "Enter Excess Contributions" screen enter the total excess contribution from 2022

 You will have to amend your 2022 tax return to pay the 6% penalty. Enter the Roth IRA contribution under IRA deductions in the Deductions & Credit section and TurboTax will calculate the penalty on Form 5329.