Retirement tax questions

You removed the 2022 excess contribution before the due date and therefore do not have an excess contribution. Please make sure that you do not have an excess contribution from prior years entered:

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. On the "Enter Excess Contributions" screen delete the amount.

You might want to check your 2022 return, you should not have the 6% penalty calculated on Form 5329 part IV.

If you have the penalty calculated then please amend your 2022 tax return and make sure you enter the excess contribution as withdrawn on the penalty screen:

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. Continue until the penalty screen and enter the excess contribution amount withdrawn.

Your 2023 Form 1099-R should have codes P and J for the withdrawal of  the 2022 excess contribution plus earnings. This Form 1099-R will have to be entered on your 2022 tax return.

1. Click on the "Search" on the top right and type “1099-R” 
2. Click on “Jump to 1099-R”
3. Answer "Yes" to "Did you get a 1099-R in 2023?"
4. Enter Form 1099-R and click "Continue"
5. On the "Which year on Form 1099-R" screen say that this is a 2023 Form 1099-R.
6. Click "Continue" after all 1099-R are entered and answer all the questions.
7. 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.