DanaB27
Expert Alumni

Retirement tax questions

To clarify, you received these Form 1099-Rs in the beginning of 2025 or in 2024? You stated you removed the excess in January of 2024. If this is correct then your financial institution should have used a 2024 Form 1099-R. Maybe you meant in January 2023?

 

What are the codes in box 7 of your Form 1099-Rs? 

 

If you removed the 2022 excess before the due date of the 2022 return then you shouldn't pay the 6% penalty on the 2022 and 2023 returns.

 

if you removed the 2023 excess in 2023 then you do not have to pay the 6% penalty.

 

You will have to amend the 2022 and 2023 returns to remove the penalty.

 

On your 2022 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. Enter the Roth IRA contribution
  5. Continue until the penalty screen and enter the excess contribution amount withdrawn.

 

On your 2023 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 "Enter Excess Contributions" screen delete the entry.

 

 

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