Hello,
At the end of 2022 I was the owner of 96 shares of a company's preferred stock in a Traditional IRA.
During the 2023 Tax Year I converted 6 shares to a Roth IRA. Upon receiving Form 1099-R for 2023 I noted that boxes 1 (Gross distribution) and 2a (Taxable amount) each had a value of $196.50. In addition, box 2b (Taxable amount not determined) was checked and Box 7 (Distribution code(s) showed codes 7K. I filed my taxes and all seemed good.
During the 2024 Tax Year I converted the remaining 90 shares to the same Roth IRA. Upon receiving Form 1099-R for 2024 I noted that boxes 1 (Gross distribution) and 2a (Taxable amount) each had a value of $0.00. In addition, box 2b (Taxable amount not determined) was NOT checked and Box 7 (Distribution code(s) again showed codes 7K. However, I am now being prompted to "Explain Excess Withdrawal".
Not sure why I am having to provide an explanation? Or for that matter, what information would need to be included? Did I miss something with the 2023 Tax Return, or is there something else going on?
Thanking the community in advance for any help.
Thanks- Dan
