Retirement tax questions

You should check with your financial institution why they have $0 as earnings listed in box 2a but you have documents that state you had $67.78 earnings. 

1) If you are indeed have earnings of $67.78 and they correct the Form 1099-R showing $67.78 in box 2a with codes P and J then you will have to report this on your 2023 tax return. 

Generally contribution made for 2023 in 2024 are deemed to have been made in 2023. Earnings on excess contribution are reported in the year they've been made. Therefore, the earnings should be reported on your 2023 return. Of course some custodians read it as the contribution was made in 2024 and therefore it would be taxable in 2024. But the correct way is to report it in 2023. Since your financial institution used P and J  you should report it on your 2023 return if you indeed have earnings.

2) No.

3) If you indeed have a new excess contribution because of the earnings then you will have to pay the 6% penalty on your 2023 return. But please check with your custodian if you have $0 earnings as they reported on Form 1009-R or the $67.78. 

If you can apply the 2023 excess as a 2024 contribution then you do not need to pay the 6% penalty on your 2024 return. On your 2024 return:

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. On the "Do you have any Excess Roth Contributions" answer "Yes"
5. On the "Enter Excess Contributions" screen enter the total excess contribution from 2023
6. On the "How Much Excess to 2024?" screen enter how much you want to apply to 2024

If you cannot apply the excess as a 2024 contribution then you need to pay the 6% penalty on your 2024 return. You need to take a regular distribution of the excess amount (without earnings) since it is after the due date of the 2023 return. This distribution will be reported on your 2025 return and then resolve the excess in 2025.