1. 1099-R (PJ), amendment needed? 2. Check This Entry: IRA Contributions Worksheet: Line 7 - Excess traditional IRA contribution credit

[ZaraliciousZ]

I have two issues/questions:

#1. I contributed to my Roth IRA throughout 2023 under the 2023 year.  In January 2024, I made an extra contribution under year 2023 to get to the $6,500 limit.  Shortly after, I found out my income exceeded the limit, and I had over-contributed.  I immediately removed the excess contribution. 

This year I received:

- a 1099-R with tax year 2024 listed, 1,090 in box 1 (gross distribution) and 67.78 listed in box 2a taxable amount, and PJ in box 7 (distribution codes)

- a 1099-R with tax year 2024 listed, 67.78 in box 1 (gross distribution) and 0.0 listed in box 2a taxable amount, and 8J in box 7 (distribution codes)

My questions for the above:

2023 Return: Do I need to amend my 2023 return?  If so, which (or both) of the 1099-Rs do I need to include?

2024 Return: Which (or both) of the 1099-Rs do I need to include?

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#2. In 2024, I contributed only $57.12 to my Roth IRA and then switched to Traditional for my remaining contributions.  I contributed several thousand during 2024, and in January of 2025, I contributed the remainder to meet the $7,000 limit between both accounts ($6,942.88 into the traditional IRA).  My income is again too high to contribute up to the full Roth IRA limit, but not so high that I could not contribute $57.12 before doing the rest under traditional.

At the end of filing my taxes, in the "Review" section, TurboTax returned this: "Here's what our check found: > 1 detail for you to review" > "Your CompleteCheck™ to-do list>Answers to review

Ensures your final number is right> Needs review"> Check This Entry: IRA Contributions Worksheet: Line 7 - Excess traditional IRA contribution credit should be equal to $57.00, the traditional IRA contribution credit from form 5329, Part III.  If I allow this to be $57, it changes my 2024 IRA contributions from $7,000 to $7,057.  I don't understand what I am supposed to do or why, I didn't overcontribute in 2024 tax year and I don't know what a contribution credit is.  I can bypass this and change it back to 0 on line 7 and continue, but I don't know if this is the correct action to take."

[DanaB27]

1. If you didn't have any tax withheld then you only need to enter Form 1099-R with codes 8J on your 2024 return. Form 1099-R with codes PJ belongs on the 2023 return.

If you didn't report a 2024 Form 1099-R with codes PJ on your 2023 return when you filed it then you will have to amend your return to report it.

2. It seems to think you had a prior year excess contribution. You removed everything in time and shouldn't have any excess contribution carried over. Please verify that you do not show a prior year excess contribution, then you can enter 0   and continue with your return.