2023 Excess Roth IRA Contribution

[helpplease44]

Hi! I have been reading on this thread and others and still have questions on what to do for my taxes.

Need help completing my 2023 taxes (I filed the extension and now they are due Oct 15) with the following scenario:

$2,537-excess contribution made on 2/9/2024 for tax year 2023 (year prior contribution to Roth IRA)

$67.78-earning from $2537 excess contribution made in 2024 for tax year 2023.

Removed both $2537 and $67.78 in 2024 before Oct 15 deadline from Roth IRA.

Questions-

1) Do I fill out form 5329 for 2023 tax year or 2024 tax year and how so? I believe I will only owe taxes on the $67.78 earnings but not the 10% early withdrawal penalty since I removed before the extended Oct 15 deadline for the 2023 taxes.

2) Do I fill out form 1099R only for 2024 tax year or do I need to report for 2024 tax year? 

3) Is there anything else that needs to be reported for tax purposes?

I want to be able to avoid completing an amended tax return for 2023. 

Thank you!

[Hdtax]

I am doing the  tax 2024. how do i report the 1099 R, after I received it in 2025. 

 Can you give me the  steps . Do I just enter the information just like the other 1099R. I can upload the information. Do I need to manually enter it. I am looking forward to hear from you

Thanks

[DanaB27]

If you received a 2024 Form 1099-R with code P and J then this will have to be entered on your 2023 tax return if you didn’t enter a Form 1099-R with codes P and J when you filed your original 2023 tax return.  Please see How do I amend my federal tax return for a prior year?

You do not need to enter the 2024 Form 1099-R with codes P and J on your 2024 tax return unless there is Box 4 Federal Tax withholding and/or Box 14 State withholding. Then you must enter the 2024 Form 1099-R into the 2024 tax return since the withholdings are reported in the year that the tax was withheld. The 2024 code P will not do anything to your income to the 2024 tax return income but the withholdings will be applied to 2024.

Please see Where do I enter my 1099-R?

If you 2024 Form 1099-R has codes 8 and J then you enter it on the 2024. You can import it or enter it manually.

@Hdtax

[khairall]

Last year, I followed your advice and created a substitute 2023 Form 1099-R so that I would not have to amend my 2023 tax return. Now, as you said would happen, I received a 2024 Form 1099-R in January with PJ distribution codes. In my case, I cannot ignore the 2024 1099-R because I have a sum in Box 4 and Box 14. So, I clicked on yes when TT asked me if I had any 2024 1099-Rs. I followed the prompts and now TT states that it looks like I may need to amend my 2023 return. Of course, I was trying to avoid that last year by constructing a substitute 1099-R. How do I ensure that TT understands that I do not need to amend my 2023 return and, at the same time, I get credit for paying federal and state tax last year on my earnings?  

[DanaB27]

You do not need to amend your 2023 return since you included it on the original 2023 return. You can ignore the amend message in TurboTax and continue. he 2024 code P will not add anything to your income in the 2024 tax return but the withholdings will be applied to 2024. You can check line 25b of Form 1040 for the federal withholding.

To preview Form 1040 in TurboTax Online:

1. Click on "Tax Tools" in the left menu
2. Click "Tools"
3. Click "View Tax Summary" in the Tool Center window
4. Click on "Preview my 1040" on the left

@khairall 

[khairall]

I just want to let you know that your solution worked. I greatly appreciate it. I wanted to mark your response as "best answer", but I did not have that choice in the pull down menu. Again, thank you.