DanaB27
Expert Alumni

Retirement tax questions

The return of the excess Roth IRA contribution without earnings after the due date won't be taxable since you are withdrawing a contribution. Therefore, you don't need to withhold taxes.

 

Next year on your 2025 return to report the Form 1099-R for the withdraw of the 2022 and 2023 excess:

 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top and type “1099-R” 
  3. Click on “Jump to 1099-R” and enter all your 1099-Rs
  4. Click "Continue" on the "Review your 1099-R info" screen after you entered all you Form 1099-R
  5. Answer "Owned Any Roth IRA for Five Years?" screen
  6. Continue through the questions and make sure you enter the net contributions prior to 2025 on the "Enter Prior Year Roth IRA Contributions" screen (include the 2022 and 2023 excess but not the 2024 excess)

This will resolve the excess contribution and you will no longer have the 6% penalty on your return.

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