While preparing our 2024 tax return (in TurboTax Premium), I discovered that annual contributions were mistakenly made to my wife’s Roth IRA after we both retired in 2021. Because we had no wages at that time, those amounts are classified as excess contributions:
April 2022 – contributed $6000
April 2023 - contributed $7500
April 2024 - contributed $8000
For unrelated reasons, a $25,000 qualified distribution (1099-R code ‘Q’) from the Roth was made in December ’24.
My question: what do I need to do to satisfy the IRS (in regard to the excess contributions) and how/where would I enter the needed information into TurboTax to correctly document the needed changes? It is my hope that the 2024 distribution can be used to reverse the excess contributions but am unsure what needs to be done (in TurboTax) to do so. I am also unclear on whether the gains that were made on those contributions need to be withdrawn as well or how they need to be recorded or reported.
We haven’t yet filed our 2024 taxes (filing as MFJ). I’ve searched the TurboTax forum and have found several similar questions but nothing that fits my particular situation. Thank you so much for any help or clarification you can provide.
