Clarification on 2024 Roth excess contribution 1099-R

[csp2025]

In April 2024 I contributed $7,000 to my Roth IRA at Schwab for year 2024. Later that year I transferred my account to Fidelity. Separately in 2024 I sold stock that ended up pushing up my MAGI to the point that my contribution was in excess of what's permitted.

When I discovered this in February 2025 I had Fidelity remove the excess contribution plus earnings, including those at Schwab. I understand the contribution will not be penalized since I have not yet filed but the earnings will be taxed, that's fine but I was hoping for some clarification on the process of filling out the 1099-R.

The recommendations I've seen on addressing this indicate to use codes P and J for box 7, however both Intuit/TT and the IRS themselves show P as referring to taxable in 2023. Additionally, when I spoke with Fidelity about the future 1099-R the gentleman said they code box 7 as a normal distribution and it's up to me to account for it with the proper codes. That somehow doesn't seem correct as I assume they send this to the IRS and my submission is expected to match theirs. Meanwhile, code 8 seems more appropriate, excess contributions taxable in 2024.

Ultimately I'm hung up on trying to be sure I'm filling out the 1099-R correctly without having one. I understand I could wait until next year but I'd like to be done with this now if possible.

Thanks for any insight you gurus might be able to share.

[AnnetteB6]

When entering the Form 1099-R for a return of an excess Roth IRA contribution plus earnings you need to use code code J with code P.  Code P will say in the drop-down menu that it is taxable in 2023, but follow-up information will indicate that it is taxable in 2024 instead.  

Since you made the excess contribution in 2024 and withdrew the 2024 excess Roth IRA contribution plus earnings in 2025 before the due date, then you will get a 2025 Form 1099-R in 2026 which should have codes P and J.  This 1099-R will have to be included on your 2024 tax return and you have two options:  

• Amend your 2024 return after you actually have your 2025 Form 1099-R in hand. 

OR

• You can report it now in your 2024 return and ignore the 1099-R when it comes unless there is Box 4 Federal Tax withholding and/or Box 14 State withholding.  Then you must enter the 2025 Form 1099-R into the 2025 tax return since the withholdings are reported in the year that the tax was withheld.  The 2025 code P will not do anything to the 2025 tax return income but the withholdings will be applied to 2025.

If you wish to report the Form 1099-R now as part of your 2024 return without amending it later, go to the use these steps:  

1. Go to Wages and Income > Retirement Plans and Social Security > Form 1099-R section of your return to add a Form 1099-R
2. Select "I'll type it in myself"
3. Box 1 enter total distribution (contribution plus earning)
4. Box 2a enter the earnings
5. Box 7 enter J and P
6. Click "Continue"
7. On "Is the IRA/SEP/SIMPLE box on this 1099-R checked?" screen answer "No, the box is blank"?
8. On the "Which year on Form 1099-R" screen say that this is a 2025 Form 1099-R.
9. Click "Continue" after all 1099-R are entered and answer all the questions.
10. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Corrective distributions made before the due date of the return".

[dmertz]

TurboTax's drop-down selection and the 2024 IRS instructions assume that you are dealing with a 2024 Form 1099-R.  However, your Form 1099-R will be a 2025 Form 1099-R where code P means taxable in 2024.   A AnnetteB6 indicated, when you indicate to 2024 TurboTax that the form is a 2025 form, TurboTax will treat it as taxable in 2024.