@tange1 wrote:
When filling my 2018 taxes I found I was ineligible for roth and had made excess contributions. I worked with the brokerage house to remove the excess. The excess was removed to a traditional in early 2019. I have 1099's for this but they state 2019 on the top.
What is the code in box 7?
If a code "P" or "JP" then:
A 2018 1099-R with a code "P" in box 7 is taxable in 2018, not 2019
You must amend 2018 to report it. The 2018 1099-R interview will say that code P means "Return of contribution taxable in 2017", but the interview will ask if this it a 2018 1099-R or a 2019 1099-R. Say 2019 and the "taxable in 2017" becomes "taxable in 2018" (the year advances by 1 each year).
The returned contribution is not taxable, but any earnings reported in box 2a are taxable and also subject to an 10% penalty of you are under age 59 1/2.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
