Hi Dmertz,
Still trying to complete my 2023 tax return for the excess contribution of $515.
Vanguard did withdraw the funds and sent me $632.
I sent them a check for $515 with self certified letter and they deposited it into my Roth IRA account.
My 2024 1099-R from Vanguard will be:
Box 1 $632
Box 2a $117
Box 7 code P
And the year is 2024
When I enter the 1099-R into Turbotax, Form 8606 is showing:
line 1 non deductible contributions $515
line 14 total basis in traditional IRA for 2023 $515
In the flow I answered the following questions:
Enter total amount put into traditional IRA for 2023 = $515
Amount switched from traditional IRA to Roth = 0
Any excess IRA contributions before 2023 = No
Yes I made and tracked my nondeductible contributions to my IRA
Total IRA Basis as of Dec. 31, 2022 = 0
No to Repayment of Retirement Distribution
Enter your Roth IRA contributions for 2023 = 0
Amount switched from a Roth to Traditional IRA = 0
No to Any Excess Roth Contributions
Yes to make IRA contribution nondeductible = 515
Your IRA deduction = 0
I just want to be certain that I am only taxed on the earnings of $117 and there is no impact on my 2024 return when I receive the 1099-R.
Your help is greatly appreciated.
Thanks, Marie
