dmertz
Level 15

Retirement tax questions

You would need to inform BofA that the amount deposited into the Roth IRA was ineligible for rollover and that you need to obtain a return of excess contribution.  BofA will distribute that along with any attributable earnings.

 

I assume that the deposit into the Roth IRA was made in 2024.  They will issue a code JP 2025 Form 1099-R near the end of January next year reporting the amount of earnings that must be included on your 2024 tax return.  In 2024 TurboTax you can indicate under Deductions & Credits that you made a regular $32,000 Roth IRA contribution.  When TurboTax indicates an excess contribution you'll tell TurboTax that you had (or will have) the $32,000 contribution (or less if you want and are eligible to treat part of this as a 2024 Roth IRA contribution) removed before the due date of your 2024 tax return.

 

And just to confirm that distributions from non-governmental 457(b) plans are not eligible for rollover (a Roth conversion is technically a type of rollover), see this IRS webpage, third from the bottom:

 

https://www.irs.gov/retirement-plans/comparison-of-tax-exempt-457b-plans-and-governmental-457b-plans

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