Advice on reporting Roth IRA excess contributions + earnings when 1099-R will have conflicting info.

[macuser_22]

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@Juir wrote:

  Code J is for Roth, but it is for early withdrawal of Roth funds which ours isn't an early withdrawal.

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The IRS used code "J" for two purposes. An "early' distribution and to identify an excess as a Roth.    Without the J it would not be a Roth but there is another way o avoid the early distribution penalty.

If you are over 59 1/2 then on the "Lets see if we can lower your tax bill" enter the box 2a amount in the "Another Reason" box to eliminate the 10% early withdrawal penalty on the earnings.

[Juir]

Well then, there is one more complication.

My husband also made a contribution to his Roth IRA in Jan and Feb of 2022 for a small amount of $200.  So, at the same time we realized that all of his contributions in 2021 were a mistake, we realized he couldn't make contributions in 2022 and pulled that contribution out as well.  The difference here is that he had a loss, and the investment company sent back $193.

They treated the requests to remove 2021 and 2022 contributions separately -- sent money back separately and sent 2 different letters stating contributions and gains for 2021 and contributions and loss for 2022. 

So, how will the 1099-R for 2022 look?  Will they send one 1099-R for all of the transactions since all transactions took place in 2022?  If so, will they separate out what happened for 2021 and 2022?  Will they send out 2 different 1099-R's?  (We will probably call the company on Monday to see if they can tell us how the info will be sent to us.)

Does this change any of the advice you gave?

[Juir]

And there was no tax withholding.

[Juir]

Thank you.