Roth IRA Excess Contribution Question

Forum|Forum|2 months ago
March 17, 2026
1 reply
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Hi everyone,

I’m looking for guidance on how to report a 1099-R coding issue on my 2025 tax return.

The Situation:

Nov 2024: Opened a Roth IRA with Fidelity and made a contribution (4K).
March 2025: Realized I was ineligible for Roth contributions due to income limits.
April 7, 2025: I withdrew the entire contribution to correct the error. The account balance has been $0 since that date (I took 3800 out since I had a loss).
The Issue: Because I did not submit a formal "Return of Excess Contribution" request (this is on me), Fidelity issued a 1099-R with Distribution Code J (Early Distribution) instead of Code P (Return of Excess). The form reflects the original contribution amount minus a $180 loss.

My Questions:
While Turbo Tax correctly shows no penalty (since the balance was $0 by the deadline) while preparing my 2025 Return, I am worried that the "J" code makes it look like a standard withdrawal rather than a timely correction.

Is it recommended to proactively attach an explanatory statement to my return to prove this was a timely removal of excess contributions?
How do I ensure the software reflects this as a "corrective distribution" so the IRS understands the excess was resolved before the tax deadline?

I’ve read that this is a common issue when formal removal forms aren't used. Any advice from those who have successfully navigated this—or experts who know how the IRS views a Code J in this context—would be greatly appreciated.

CesarJ

Level 6

Since the withdrawal happened before the tax deadline, the IRS considers this a timely return of excess contributions.

You have already contacted Fidelity and they cannot correct the form, so you will work with the Form 1099-R as presented.

Your Form 1099-R only shows a code J in Box 7, so you will need to add the additional code of P for Box 7 (J & P both), to indicate that this is a prior year correction by following these steps:

Go to Income on the left panel within your TurboTax account
Click on the Review to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R)
Click on the pencil to the right of your 1099-R to review/edit it
Continue through the questions until you reach, "Enter your 1099-R details from _"
Enter the information from the original Form 1099-R that you received
For Box 1, enter the original contribution + earnings amount
For Box 2a, enter zero (0), since there were no earnings
Ensure the details from your Form 1099-R are correct, including Distribution Codes J & P being used in Box 7, then Continue