I had excess funds contributed to a Roth IRA for 2023. Investments were made on 2 separate occasions (Dec 2023 and Feb 2024) for $1500 each. I had the contributions and earnings reversed before the tax deadline of 2023 and they verbally said the earnings were $200.53. I am under 59 1/2 years old.
When they transferred me to a trader to complete the transaction, he told me to consult a tax professional for the numbers and they are estimates. He also said he was using code P because it was for a previous year.
I have read on the forums here, that I have 2 options.
1) Generate my own 1099-R in turbo tax before filing.
2) Wait for 1099-R in 2025 and file amended 2023 return.
I would rather generate my own now and get my taxes done, rather than file an amended return.
Couple of questions:
1) If I do decide to wait for 1099-R, will I have to pay a penalty and interest with amended 2023 return if I had earnings from revered Roth transactions?
2) If I decide to make my own 1099-R can I overestimate my earnings by like $50, just to be safe and avoid penalties or interest, possibly amending in future for a small refund?
For example:
Box 1: $1753.53
Box 2a: $253.53
3) Can I claim $253.53 as "Corrective distributions made before the due date of the return" as I go through making my own 1099-R in Turbo Tax?
4) If I do put in the numbers they verbally told me:
Box 1: 1703.53
Box 2: 203.53
and the 1099-R I receive in 2025 shows more earnings, do I then need to amend my return? I assume if they earnings are less, I don't need to do anything or can amend to get refund amount.
5) Are there any other boxes I need to check in my generated 1099-R besides, box 1, box 2a, box 7 - Code J,P? If I get my 1099-R with more boxes checked, I assume they don't effect taxes, right?
Thank you.
