After fixing excess Roth IRA contributions from previous years, I received multiple 1099-R codes (T, 8J, PJ); How do I report?

[jliangsh]

Hi all,

I want to make sure I report this correctly.

In 2025, I discovered that I had excess Roth IRA contributions in prior years:

• 2021: contributed $12,000 (limit $6,000)
• 2023: contributed $13,000 (limit $6,500)
• 2024: contributed $14,000 (limit $7,000)

I corrected everything in 2025:

• For 2021 and 2023, I removed the excess as soon as I realized the error, amended my returns, and already paid the 6% penalties and interest (these should be fully resolved).
• For 2024, I withdrew the excess plus earnings before the extended deadline (Oct 2025), so no 6% penalty applies.

I have now received three 1099-R forms with the following codes:

• T
• 8J
• PJ

My understanding:

• 8J → earnings from the 2024 correction, taxable in 2025
• PJ → taxable in prior years (already handled via amendments)
• T → I’m not entirely sure; my understanding is that it indicates a general Roth distribution (likely not taxable, but I would like to confirm)

My questions:

• Am I understanding this correctly?
• When entering the 1099-R forms, TurboTax asks: “Do any of these situations apply to you?” One option is: “I need to file a substitute 1099-R.” Should I check this?
• TurboTax also asks: “Did you roll over all of this $6,500.00 (Box 1) to another retirement account?” Since I removed the excess contributions, I selected: “I did something else.” Is that correct?
• And for the question: "What were your Roth IRA contributions prior to 2025?" should I add up all previous contributions (including excess ones?)
• It then asks: "Enter your excess Roth IRA contributions made in 2024 or prior years" Should I add up all excess contributions from 2024 and before? Or, given that I've already removed them all and paid all penalties, should I enter 0 instead? 
• Is there anything else I should watch out for?

Thank you so much! I just want to make sure I don’t accidentally misreport.

[ReneV4 · Accepted solution]

No. You should not select that you're filing a substitute 1099-R, since you have actual copies that you are entering.

Yes. I did something else is the correct choice because you are correcting an error, not rolling the money over.

Yes. You should add up everything you actually put in, including the excess amounts. That way, TurboTax knows you had enough basis when you removed them.

Yes. You should enter zero (0) since you removed all excesses by the end of 2025 and have no remaining excess as of December 31, 2025. If you enter an amount here, TurboTax will think you still have excess in the account and will calculate the 6% penalty.

Here are some things to watch out for:

• Ensure all 3 of your 1099-R entries are exactly how they appear on your original forms
• Ensure earnings (8J) show up as taxable income on your 1040 Line 4b
• Ensure Form 5329 is not generated
• Ensure your total Roth Basis (Form 8606) is updated (Your basis should be reduced by the excess contributions you removed)

Also, regarding the code T, here is a link to What do all the codes in Box 7 of the 1099-R mean?