1099-R 2024 forms for excess Roth IRA contributions in 2023 and 2024

[tax124]

Hello.  Requesting help please in how to report the 2 1099-R 2024 forms received for withdrawing from Roth IRA to correct excess contributions made.

In December 2023, $7,500 contribution was made to Roth IRA for 2023 year. In January 2024, $8,000 contribution was made to Roth IRA for 2024 year. 

I later realized in March 2024 while doing 2023 taxes that I was not eligible to contribute to Roth IRA account for both 2023 and 2024 years. For 2023 year contribution, the entire amount contributed in excess ($7,500) was withdrawn, along with any earnings - this was done in March 2024.  The same action was taken in March 2024 for the entire amount contributed in excess ($8,000) along with any earnings for the 2024 year contribution. 

When I completed 2023 year tax, I entered into TurboTax that $7,500 was contributed to Roth IRA for 2023 year, and that $7,500 was withdrawn before the tax due date in April 2024, and no penalty incurred.

In 2025, I received 2 1099-R forms, both with 2024 on the form: 

1) 1st form is for 2023 excess contribution withdrawn along with earnings, and has code PJ. There is an amount shown in box 4 for 'Federal income tax withheld."

2) 2nd form is for 2024 excess contribution withdrawn along with earnings, and has code J8.  There is an amount shown in box 4 for 'Federal income tax withheld."

Questions:

1) Do I have to amend 2023 tax return and report form with JP code for 2023 year excess contribution withdrawn? I reported in the 2023 tax return that the entire amount contributed was withdrawn before tax due date for that year.

2) For 2024 tax return currently in progress, I will enter/report the form with code J8 for 2024 excess contribution. May I confirm that this is correct please?

3) For 2024 tax return currently in progress, I will also report form with code JP for 2023 excess contribution because box 4 has an amount shown for 'Federal income tax withheld." Is this correct please?

4) If I have to enter both forms for 2024 tax return, after both forms are entered into TurboTax, I encounter issue of TurboTax asking me to "Identify the plan," and the only options are qualified retirement plan, nonqualified annuity, modified endowment contract. The problem is that Roth IRA is not a qualified retirement plan, and is also not the other 2 options. I am not able to pass this screen without selecting 1 of the listed options.

Thank you for your help.

[DanaB27]

1) Yes, if you didn't report the earnings by entering a 2024 Form 1099-R with code PJ on your original filed 2023 tax return then you will have to amend your 2023 tax return.

2) Yes, you will enter the 2024 Form 1099-R with code 8J on the 2024 return to report the earnings in box 2a.

3) Yes, you will also enter the 2024 Form 1099-R with code PJ on the 2024 return to get the taxes withheld applied to 2024. The 2024 code P will not add anything to your income in the 2024 tax return but the withholdings will be applied to 2024.

4) TurboTax is aware of this issue. 

As a workaround you can enter first only Form 1099-R with code 8J:

1. Click on the "Search" on the top right and type “1099-R” 
2. Click on “Jump to 1099-R”
3. Enter Form 1099-R with code 8J
4. On the "Here's your 1099-R info" screen click "Continue"
5. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Corrective distributions made before the due date of the return".
6.  Explain the Return of Contribution
7. Go back to the "Here's your 1099-R info" screen and add Form 1099-R with code PJ
8. When you back on the "Here's your 1099-R info" screen go back to the Wages & Income screen by clicking on "Wages & Income" (on the left side in TurboTax Online or on the top in TurboTax Desktop).
    

You will have Form 5329 showing the exception 21 on line 2 to exclude the earnings from the 10% early withdrawal penalty.

[tax124]

Thank you!

[tax124]

Hello,

I worked on amending 2023 tax on TurboTax 2023 software, but was not able to submit the amend electronically via TurboTax efile.  It says the deadline of October 2024 has passed. 

Is there a way to efile the amend electronically via TurboTax or elsewhere

Thank you for your help. 

[tax124]

Another question please. For 2023 amend and 2024 tax filing, when TurboTax asks for the amount contributed to Roth IRA, do I enter just the amounts contributed for each respective year ($7,500 for 2023 and $8,000 for 2024)? Or do I enter amount contributed AND its earnings?

And what do I enter for "Corrective distributions made before the due date of the return" please? Amount contributed and its earnings?

Thank you for your help.

[tax124]

For 2024 filing, I will enter both forms and use workaround as suggested.  

For the 'corrective distributions made before due date return' field, do I enter amounts for 2024 year only? Will this be the amount contributed plus its earnings for 2024?

Thank you for your help.

[DanaB27]

You will have to print and mail your 2023 amended return. 

Yes, you only enter the contribution amounts without earnings for each year ($7,500 for 2023 and $8,000 for 2024) when TurboTax asks for the amount contributed to Roth IRA. Make sure you enter the contribution amount as withdrawn on the penalty screen.

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. Enter the Roth IRA contribution
5. Continue until the penalty screen and enter the excess contribution amount withdrawn.

For "Corrective distributions made before the due date of the return" you will enter the earnings from box 2a of Form 1099-R.

Yes, on the 2024 return you will only enter the earnings from box 2a of the 2024 Form 1099-R with code J8.

@tax124 

[tax124]

Thank you for all your replies. 

For 2024, I had e-filed already, without realizing that I had entered the amount for  "Corrective distributions made before the due date of the return" incorrectly.  I entered $8,047, which is both the excess amount contributed plus its earnings for 2024.  I should have only entered the 2024 earnings from box 2a of the 2024 Form 1099-R with code J8, which is $47.09.  All fields in both 1099-R forms were entered correctly when it was submitted.

For 2024, I worked on a draft to amend it to correct the field "Corrective distributions made before the due date of the return" to $47.09 (from previously $8,047).  At the end after edit was entered, TurboTax showed "We don't detect any differences between your original 2024 return and your amended return. If you're sure you need to amend, explain why below."  The amount shown in federal refund box is zero in the draft for the amend.  Do I still need to amend 2024 please?  Thank you for your help. 

[DanaB27]

No, you do not need to amend your 2024 return.

The entry under "Corrective distributions made before the due date of the return" goes on line 2 of Form 5329. For line 3 line 2 is subtracted from line 1 but you do not enter a negative amount. Therefore, your return doesn't change and you do not need to amend your return since each time you will ended up with $0 (or blank field) for line 3.

[tax124]

Thank you for all your help!