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cheryl_butler-ya
New Member

Contributed $1200 to Roth Ira in 2021 for 2021. Took out excess $300 before filing '21TR. Age=45. Where do I report earnings 10% on excess contrib. on 2021TR? No 1099R.

I won't get the 2022 1099-R until 2023, but would like to file my 2021 TR correctly now, so I don't have to amend my 2021 TR. I know I need to report my excess earnings in 2021 and a 10% penalty on these excess earnings. I can compute my excess earnings and 10% penalty. But...Where do I put this on my return so the IRS sees that I have correctly reported this? How do I get Turbo Tax to input this info correctly when I don't have a 1009-R and don't know what it will look like?
1 Reply
macuser_22
Level 15

Contributed $1200 to Roth Ira in 2021 for 2021. Took out excess $300 before filing '21TR. Age=45. Where do I report earnings 10% on excess contrib. on 2021TR? No 1099R.


@cheryl_butler-ya wrote:
I won't get the 2022 1099-R until 2023, but would like to file my 2021 TR correctly now, so I don't have to amend my 2021 TR. I know I need to report my excess earnings in 2021 and a 10% penalty on these excess earnings. I can compute my excess earnings and 10% penalty. But...Where do I put this on my return so the IRS sees that I have correctly reported this? How do I get Turbo Tax to input this info correctly when I don't have a 1009-R and don't know what it will look like?

*IF* you requested a return of contributions due to an excess contribution and the excess was removed before the extended due date of the 2021 tax return and the earnings were also returned and you know that the IRA custodian will report this as a return of contribution and not as a normal Roth distribution but as a return of contribution with a code "JP" in box 7 - then:

You can just report it now 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 also enter the 2022 1099-R into the 2022 tax return since the withholding is reported in the year that the tax was withheld.

The 2022 code JP will not do anything in 2022 but the withholding will be applied to 2022.

You would enter the 1099-R with the total distribution in box 1 (the contribution plus the earnings),

The earnings in box 2a,

Enter code "P" in box 7 (Top) - don t worry that it will say "taxable in 2019 "

Enter code "J" in box 7 (Bottom).

On the "Which year" screen say that this is a 2022 1099-R. - That makes it taxable in 2021 and not 2022

After the 1099-R summary screen press continue.

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.

Enter the explanation for the excess contribution and that you are reporting a 2022 1099-R on your 2021 tax return to avoid having to amend in 2022.

The box 2a earnings will be taxable income reported on line 4b on the 1040 form and if under age 59 1/2 will also be subject to a 10% penalty on a 5329 form that will be reported on line 59 on the 1040 Schedule 4 form.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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