DanaB27
Expert Alumni

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.

 

  1. Click on "Search" on the top right and type “IRA contributions” 
  2. Click on “Jump to IRA contributions"
  3. Select “traditional IRA
  4. Answer “No” to “Is This a Repayment of a Retirement Distribution?
  5. Enter the amount you contributed
  6. On the "Do you have any Excess Traditional IRA Contributions" answer "Yes"
  7. 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:

 

  1. Click on "Search" on the top right and type “IRA contributions” 
  2. Click on “Jump to IRA contributions"
  3. Select “traditional IRA
  4. Answer “No” to “Is This a Repayment of a Retirement Distribution?
  5. Enter the amount you contributed
  6. On the "Do you have any Excess Traditional IRA Contributions" answer "Yes"
  7. On the "Enter Excess Contributions" screen enter the 2023 excess contribution amount
  8. Say 'Yes" to "Contribution amount Withdrawn"
  9. Enter the amount withdrawn on ethe "Enter Amount Withdrawn" screen
  10. Say "Yes" on the next screen that this was reported on Form 1099-R

 

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