Excess contributions to IRA - need to amend?

[Stan208]

I had been regularly contributing to my IRA via payroll in 2023, and when completing my 2023 taxes, realized my income level had increased to the point where I had contributed beyond the limit. I removed the excess funds in March 2024, and reported both the original amount, and the amount I removed on my 2023 taxes prior to submitting them. 

Now, I have received a 1099 R with a tax year of 2024, and Turbo Tax is saying I 'may' need to file an amended return. If my 2023 taxes reflected the excess contribution distribution, do I need to amend? Do I need to enter the 1099 R on my 2024 taxes?

[DanaB27]

Generally, if you already reported the earnings on an 2023 excess IRA contribution on your 2023 return then you do not have to amend your return. And if you had no taxes withheld then you do not need to enter it on your 2024 return.

To clarify, what is the code in box 7? You stated this was a work retirement account (which isn't an IRA)? If this was about a work retirement account like a 401(k) then note the excess deferral is reported on your 2023 return (Form 1099-R code P) but the earnings would be reported in 2024 (Form 1099-R code 8).

[Stan208]

Thanks for confirming! It is definitely an IRA - I mistyped earlier, the regular deposits were from my checking account, not direct deposit. They just happened on the same schedule, so I got a little mixed up. 

Box 7 on my 1099 R is JP (early distribution from a Roth IRA, and earnings taxable in 2023). 

[fanfare]

"reported both the original amount, and the amount I removed on my 2023 taxes prior to submitting them."

you have to clarify: what lines and amounts?

According to IRS instructions, this does not sound like proper reporting.

What is the taxable amount on your 1099-R code PJ?, that is the amount to be reported on Line 4b of 2023 tax return.

@Stan208 

[Stan208]

Essentially, I answered the Turbo Tax Prompts. 

I was asked the full amount of contributions to my Roth ($6,500). Then I was prompted to enter the amount of excess contributions withdrawn before the due date ($3,550), leaving my contribution at $2,950.

While I see the $2,950 number in the deduction and credit smart check on TurboTax, Line 4 a and b in my final taxes are blank. 

[Stan208]

The taxable amount on my 1099R is $451.43. 

Based on your previous reply, @fanfare,  it sounds like I do have to amend my 2023 taxes. I don't understand why TurboTax said I could remove before April 15, 2023, and have no issue though. 

[Stan208]

Also, if I look at using TurboTax to amend my 2023 return, and use the 1099 - R I received in 2024, the codes aren't correct --JP (the code on my 1099-R) is excess contributions, taxable in 2023. But when I enter that code while doing my 2023 amended return, JP shows up as excess contributions, taxable in 2022. 

???

[fanfare]

you have to indicate to TurboTax that your 1099 is a 2024 1099 so that  moves it to applicable for the year you are amending.

By "no issue" is meant no 6% penalty for leaving excess contribution not removed timely.