how do I report excess Roth IRA contributions for which I was ineligible to fund and had returned to me resulting in a small gain of $61

Forum|Forum|3 months ago
March 18, 2026
1 reply
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I mistakenly funded $5000 into a Roth without any wages realizing I was ineligible.

TurboTax Online

MinhT1

Level 15

On your 2025 tax return, you do not report the excess contribution as it has been withdrawn. The earnings have to be reported and taxed in 2025,

For this, you would create a 2026 form 1099-R with the total distribution (excess plus earnings) in box 1, the earnings in box 2a and code PJ in box 7. You then enter this 1099-R on your 2025 tax return, and the earnings will be taxed. When entering this form 1099-R, make sure to indicate that the year on the form is 2026, as this is a replica of the form you will receive for year 2026 in 2027.

When you receive the 2026 form 1099-R with code PJ in box 7 (in 2027) for this withdrawal, there is no further action needed.

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