excess contribution...or not?

Forum|Forum|2 years ago
March 15, 2024
1 reply
4 views

Hello - I erroneously made an excess IRA Roth contribution in January of 2022. I subsequently received in March 2023 a distribution of that excess contribution BEFORE I submitted my 2022 taxes return in April 2023. I received a 1099R for the March 2023 distribution. I am 68 years old.

1) was I supposed to report the excess contribution on my 2022 taxes since i received distribution PRIOR to submitting 2022 tax return in April 2023?

2) Since I just received (in Feb 2024) a 2023 Form 1099R for that distribution in March 2023, do I need to report it on my 2023 return?

Not A Product Question

DanaB27

Level 15

No, you do not report an excess contribution on your 2022 tax return. You removed the excess plus earnings before the due date and therefore do not have an excess contribution for 2022.

No, you don't need enter the 2023 Form 1099-R with code P and J on your 2023 tax return. An exception would be if you had any taxes withheld then the Form 1099-R will have to be entered on the 2023 tax return to apply the taxes to 2023. The code P will tell TurboTax to ignore the income for 2023.

The 2023 Form 1099-R with code P and J belongs on your 2022 tax return. If you did not enter a Form 1099-R with code P and J when filing your 2022 tax return and have an amount in box 2a then you will have to amend your 2022 tax return.

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gjgogolAuthor

Level 5

@DanaB27I imported the 2023 Form 1099R into TT for 2023 return. Should I delete the imported 2023 Form 1099R info or leave it alone since it had a code P in box 7?

Also, you state code "P and J". There is only one code that is P. Box 2a is blank. Do I still need to amend 2022? BTW, my 2022 contribution was $7K but my distribution was $5900, i.e. a loss. Do I still need to amend 2022 return?

DanaB27

Level 15

You do not need to delete the 2023 Form 1099-R since the code P will tell TurboTax that it needs to ignore the income on the 2023 tax return.

You do not need to amend your 2022 tax return since you had a loss. Only earnings are taxable and have to be reported.

You might want to check with your financial institution since a code P only will indicate a return of an excess deferral. For a return of an 2022 excess Roth IRA contribution, returned in 2023, the code in box 7 should be P and J.

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