Excess Roth IRA Contribution

Forum|Forum|7 months ago
January 29, 2026
1 reply
77 views

I made an excess Roth IRA contribution in the amount of $1400 on December 30, 2025 (really intended for 2026 but allocated to the 2025 year). I withdrew the excess contribution on January 2, 2026, and since there was a market drop, the withdrawal amount was $1390.34. I want to avoid the 6% penalty but will receive the 1099-R from my broker in January 2027.

Do I need to report the transaction in my 2025 taxes to avoid the 6% penalty? If so, how can I do it without the 1099-R form?

CesarJ

Alumni - Intuit

No, you don't need to report the excess Roth contribution in 2025 because it was withdrawn before the due date of the return (including extensions). Because you removed the excess contribution (plus earnings/loss) on January 2, 2026, the contribution is considered timely corrected, and the 6% penalty doesn't apply. Thus, you don't need a 1099-R to file your 2025 tax return with TurboTax.

You will receive a 1099-R in 2027 that'll be reported on your 2026 tax, and will reflect the corrective distribution. Any earnings or losses associated with the correction are reported in the year of distribution (2026 in your case). Because this was a return of an excess contribution, the IRS doesn't allow a deduction for the loss.

(Edited Feb. 2, 2026 1:52 PM PST)

@user17696539775

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