Retirement tax questions

@ljwil123  

I am confused on what forms you are seeing these issues, but I followed the steps from @DanaB27  and I was able to get through the process to import a 1099-r on this years tax filing. TurboTax came back with the exact steps per below and processed with no errors.

now next year (2024) I will get the 1099-r from my financial institution as the excess withdrawal was done in year 2024 but before the 2023 tax year filing due date. all should be fine as I claimed the "gain/loss" on this years taxes as I should have. I clearly laid out on this years taxes that my Roth IRA distribution was due to it being excess and I followed the steps in IRS Pub. 590-A.

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You will use codes P and J since you made the Roth IRA contributions in 2023 and withdrew them in 2024.

Only A5 should be checked.

Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2022" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2023.

You will get a 2024 Form 1099-R  in 2025 with codes P and J for the withdrawal of the 2023 excess contributions and earnings. This 1099-R will have to be included on your 2023 tax return and you have two options:  

• You can wait until you receive the 2024 Form 1099-R in 2025 and amend your 2023 return or
• You can report it now in your 2023 return and ignore the 1099-R when it comes unless there is Box 4 Federal Tax withholding and/or Box 14 State withholding. Then you must enter the 2024 Form 1099-R into the 2024 tax return since the withholdings are reported in the year that the tax was withheld. The 2024 code P will not do anything to the 2024 tax return income but the withholdings will be applied to 2024.

To create a Form 1099-R in your 2023 return please follow the steps below:

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 2024 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".