DanaB27
Expert Alumni

Retirement tax questions

If you do not have the Form 5329 include on your 2022 tax return then you didn't not have a 6% penalty calculated and are good.

 

Generally, if you did not remove the excess contribution plus earnings by the due date then you would have to pay the 6% penalty for each year the excess remained in he account. But you removed the excess plus earnings in time and therefore you do not have to pay the 6% penalty.

 

The earnings from an 2022 excess contribution have to be reported on the 2022 tax return. Code P on the 2023 Form 1099-R indicates that you have to report the earnings on the 2022 tax return.

 

You will say yes to "Did you get a 1099-R in 2022?"  even if you didn't get it until 2023. Then you are able to enter the 2023 Form 1099-R with codes P and J.

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