@MarilynG1 @DanaB27
I have a similar situation but in my case, after realizing that I'm not eligible to contribute to a Roth IRA, I soon after asked for the whole contribution withdrawal, and within a few days the money was returned to me.
In 2024, I received the form 1099-R and the values are
Box 1 - Gross distribution: $5,000.00
Box 2a - Taxable amount: $0.00
Box 7 - Distribution code: 8 J
I have more than one value in Box 7
However, Turbotax gave me a message after I was done entering this form stating,
"
- Based on the 1099-R Box 7 code that you entered, it looks like you may need to pay extra taxes on this distribution.
- This most commonly happens when you take money out before you reach retirement age (or before you're supposed to). The extra tax encourages you to keep your retirement money for retirement instead of withdrawing it early.
- We’ll factor in any taxes withheld when you took it out and check for exceptions after you enter all of your 1099-Rs."
I should not be charged taxes on this excess Roth IRA distribution which I withdrew soon after. Even Box 2a has a value of $0.00 and Box 7 has a value of "8J"
My questions are
1. Do I need a new 1099-R with corrected values?
2. If not then where and how I can instruct turbo tax to not calculate taxes?
Detail help with exact options in TurboTax will be appreciated.
