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Retirement tax questions
1) Yes, you will enter the Traditional IRA contribution in the IRA contribution interview under Deductions & Credits and TurboTax will fill out 2023 Form 5329 and calculate the 6% penalty on the excess contribution.
2) You should have requested return of contribution without earnings since it was after the 2023 due date. You will get a 2025 Form 1099-R with 2a blank and report it on your 2025 return. Please see Return of Excess Traditional IRA Contributions for additional information.
Yes, you will need to pay the 6% penalty on your 2024 return since the excess wasn't removed by December 31, 2024.
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “traditional IRA”
- Answer “No” to “Is This a Repayment of a Retirement Distribution?”
- Enter the amount you contributed
- On the "Do you have any Excess Traditional IRA Contributions" answer "Yes"
- On the "Enter Excess Contributions" screen enter the 2023 excess contribution amount
Next year on your 2025 return enter the 2025 Form 1099-R and then go to the IRA contribution interview:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “traditional IRA”
- Answer “No” to “Is This a Repayment of a Retirement Distribution?”
- Enter the amount you contributed
- On the "Do you have any Excess Traditional IRA Contributions" answer "Yes"
- On the "Enter Excess Contributions" screen enter the 2023 excess contribution amount
- Say 'Yes" to "Contribution amount Withdrawn"
- Enter the amount withdrawn on ethe "Enter Amount Withdrawn" screen
- Say "Yes" on the next screen that this was reported on Form 1099-R
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April 14, 2025
6:24 AM