Contributed to IRA and Roth IRA while not working

[DanaB27]

Yes, that is correct.

[RNTAX2025]

Hello,

Thank you for clarifying that I do not need to input the State and Federal taxes withheld on the 1099-R form since it will be applied to my 2025 tax return. For the box 2A, taxable amount, do I need to input this amount? 

This would be the Gross Distribution minus my total excess contributions, correct? 

For excess IRA and Roth IRA contributions, do I only need to input t the Gross Distributions amount (box 1) and the Taxable amount (box 2a)  into 1099-R form? 

Thanks!

[RNTAX2025]

for the substitute 1099-R form for both IRA and Roth IRA, can you please confirm the correct selections for box 7?

Excess IRA contribution -  Box 7 is selection number 2 for Early distributions, exception applies, what is the second selection?

Excess Roth IRA contribution -  Box 7 is selection number 2 for Early distributions, exception applies, what is the second selection?

thanks!

[Opus 17]

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@RNTAX2025 wrote:

for the substitute 1099-R form for both IRA and Roth IRA, can you please confirm the correct selections for box 7?

Excess IRA contribution -  Box 7 is selection number 2 for Early distributions, exception applies, what is the second selection?

Excess Roth IRA contribution -  Box 7 is selection number 2 for Early distributions, exception applies, what is the second selection?

thanks!

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No.  For the excess Roth, use code P and J, not code 2.  For the traditional IRA, use code 2 and P. 

[RNTAX2025]

For the Rollover IRA,  number 7 is selection 2  and P.  It says P is for Return of contribution taxable in 2023. Shouldn't this be 2024? Please confirm. 

Thank you!

[DanaB27]

 Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2023" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2024.
 

[Opus 17]

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@RNTAX2025 wrote:

For the Rollover IRA,  number 7 is selection 2  and P.  It says P is for Return of contribution taxable in 2023. Shouldn't this be 2024? Please confirm. 

Thank you!

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Technically yes, but that's normal in this situation.  In January 2026, you will get a 1099-R that matches the substitute you are creating now, and on that 1099-R, code P will mean "return of contribution taxable in 2024", which is the tax you are paying now. 

[RNTAX2025]

Hello, for the excess IRA contribution, Fidelity did send home a letter showing the amount that was returned to me plus the applicable earnings. However, for the excess Roth IRA contribution, they did not. All I see is the excess contribution return amount and not applicable earnings. Is this correct for a Roth IRA? 

[RNTAX2025]

In this case, do I just input the Gross Distribution amount for the Roth IRA excess amount and for selection 2a, I leave blank and 2b, I put taxable amount not determined? 

[Opus 17]

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@RNTAX2025 wrote:

In this case, do I just input the Gross Distribution amount for the Roth IRA excess amount and for selection 2a, I leave blank and 2b, I put taxable amount not determined? 

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For either IRA, the total distribution is box 1, and the taxable amount (earnings) goes in box 2a.

If the Roth IRA had no return of earnings, then box 2a would have a zero.  However, is that a reasonable answer or do you need to contact the Roth IRA custodian and speak to someone else?  If you only had the money in there a few days and it was held in a cash account by default, then zero earnings is reasonable.  It would also be correct if your investments lost money between the date of the contribution and the date of the withdrawal.  But if the investments gained money, there must be part of the gain attributed to the contribution.