I received a 1099-R for a code of “P-Return of contribution taxable in 2015.” The root cause of this is that I recharacterized the IRA contribution into a ROTH IRA. In looking at my 2015 taxes I only put a $5,500 contribution into my ROTH and $0 shows as the contribution into the IRA. Do I need to amend my 2015 returns and if so, since I listed $0 as my 2015 IRA contribution, what exactly would I amend? "
Since this was a Traditional IRA return of contribution. I am assuming that the IRA/SEP/SIMPLE box is checked.
Amending your 2015 tax return would do two things: 1) place the box 1 amount on line 15a on the 1040 form and a zero taxable amount on line 15b, and 2) Ask for an explanation statement for the reason for the return that is attached to line 15.
Since that would have no affect on the overall tax and is not likely to trigger a letter from the IRS, I would ignore it. In the unlikely event that the IRS sends a letter in a year or so, a simple answer to the letter would clear it up and no amendment should be necessary.
The code P says this was a return of contribution, not a recharacterization which would have a code R.
Was this a Traditional IRA contribution recharacterized to a Roth?
Is the IRA/SEP/SIMPLE box checked?
Is anything in box 2a?
Hi! Box 2a shows 0.00.
When I was working with Schwab they took the money out of the IRA and put it into the Roth. I believe I made the contribution in calendar year 2015 for 2016. The reason is I mistakenly thought I could contribute to both a traditional and Roth IRA but when I realized the contribution limits I asked them to remove the contribution from my traditional and put it in my Roth.
Hi! I looked back and my belief is correct. The amount returned from the IRA in calendar year 2016, and what I put into my Roth instead, was a contribution I made in December of 2015 for the 2016 calendar/savings/contribution year. Since my 2015 taxes don't show a IRA contribution I believe I don't need to refile but that's why I'm asking... it all gets a bit confusing!
Since this was a Traditional IRA return of contribution. I am assuming that the IRA/SEP/SIMPLE box is checked.
Amending your 2015 tax return would do two things: 1) place the box 1 amount on line 15a on the 1040 form and a zero taxable amount on line 15b, and 2) Ask for an explanation statement for the reason for the return that is attached to line 15.
Since that would have no affect on the overall tax and is not likely to trigger a letter from the IRS, I would ignore it. In the unlikely event that the IRS sends a letter in a year or so, a simple answer to the letter would clear it up and no amendment should be necessary.