1099R Box 7

 

Was your excess deferral in 2022 or 2023?  You code have Codes P and 8 if the excess deferral occurred in 2023, or Codes P and 1 if the excess deferral occurred in 2022.  To create a 1099-R in your 2023 return for return of excess IRA contribution, please follow the steps below:

 

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R”
4. Answer "Yes" to "Did you get a 1099-R in 2023?"
5. Select "I'll type it in myself"
6. Box 1 enter total distribution (contribution plus earning)
7. Box 2 enter the earnings
8. Box 7 enter P and J (for Roth IRA) or 1 (for traditional IRA) 
9. Click "Continue"
10. On the "Which year on Form 1099-R" screen say that this is a 2023 1099-R.

 

You will not have any additional tax or penalties; you're just reporting.

 

Here's more discussion on Removing Excess IRA Contributions.

 

 

 

@MarilynG1 

Thanks. I have created the 1099-R and everything is good except when I input the P and 1 (mine is 2023 contribution), the additional tax on early withdrawal on IRA triggered an additional tax (on schedule 2) of 10% on the earnings I put in Box 2a. But when I removed the 1 and left with only one code P in Box 7, the additional tax/schedule 2 go away. Again I am over 59 1/2 and its for traditional IRA so code 1 should not be right for me as its for taxpayer under that age. Am I correct?

Enter the Form 1099-R as received and, if TurboTax generates Form 5329 reporting a penalty on an early-distribution, on the page where you can claim exceptions to the early-distribution penalty enter the taxable amount in the box for Corrective distributions made on or after December 29, 2022.