In 2024, I went to my bank that I have my RothIRA set up and contributed the full $6,500 for the past year, 2023. When doing my taxes on turbotax in April, it popped up that I had overcontributed by $2537. I informed my bank of this and asked them to remove both the overcontribution amount and any earnings (net income attributable). I had a lot of back and forth from the bank and it took them 6 months to do this for me. Below are the dates for everything.
2/9/24- $6,500 contribution last year for roth ira 2023 ("regular contribution last year")
3/31/24 and 6/30/24- Interest paid on the overcontribution
8/29/24- "withdrawal of excess contribution last year" ($2537 removed)
8/29/24- "excess earnings withdrawal" ($67.78 removed)
I filed for extension for my 2023 taxes then after this was all done, submitted my taxes.
Turbotax had stated during the filing stage (not on a forum) the following: "If you made the contribution to your Roth IRA in 2024 (between January 1, 2024 and the 2023 filing deadline without extensions) but you designated it as a 2023 contribution and you withdrew it in 2024, the Form 1099-R you get will be for 2024. Include the Form 1099-R on your 2024 return. Your Form 1099-R will have code 8 and a code J in box 7."
This year, I received the 2024 1099-R form with the following listed:
-Distribution codes of J and P (instead of J and 😎
-Box 1- gross distribution=$2604.78
-Box 2a- taxable amount=$0.00
-"Taxable amount not determined"=checked
I was informed to add this form on my amended 2023 taxes. I was advised to add the $67.78 to the 1099-R form even though it isn't listed. In adding this on the 2023 taxes, this would increase my income and then I would be in the same situation that started all of this with another overcontribution to my 2023 rothira. I have asked for an extension for my 2024 taxes and have not yet filed the amended 2023 taxes.
My questions are:
1) Where do I report the $67.78 to be taxed? Shouldn't it be on the 2024 tax form since that is the only year it was made?
2) Do I report the $67.78 as ordinary income in 2024 taxes? I read this on another tax forum.
3) If this $67.78 does need to be reported on 2023 taxes, then how do I go about correcting my rothira and reporting that on both my 2023 and 2024 taxes. And what forms would be needed?
Sorry for all the questions and I know I've asked them on other forums but since this situation has become more complex, I figured it would be easier to have all the information on one question.
Thank you!
