Excess Roth IRA Contribution in 2021 & 2022

[jinhuang262]

I have made contributions to my Roth IRA in 2021 and 2022 without realizing that I actually exceeded the income limit. (I posted in this last year https://ttlc.intuit.com/community/retirement/discussion/re-roth-ira-issue-with-form-8606-5329/01/297... )

Now I need someone to help and see if I am doing this right.

1)  For 2021 excess contribution, I removed the money and amended with Form 5329 in 2023. Received 1099R with code J in 2024.

2)  For 2022 excess contribution, I did recharacterization (filed in 2022) to traditional IRA and converted back to Roth in 2023. I received 1099R with code R and 1099R with code 2 IRA/SEP/SIMPLE checked (traditional IRA) in 2024.

Should I ignore the one with code R and not upload it because if I do it seems to add up more distributions?

[DanaB27]

Yes, you will ignore Form 1099-R with code R.

You will enter Form 1099-R with code J and Form 1099-R with code 2 (for the conversion).

Please follow these steps to enter the conversion and the Roth IRA withdrawal:

1. Click on "Search" on the top right and type “1099-R”  
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R with code 2
4. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”
5. On the "Review your 1099-R info" screen click "Add Form 1099-R"
6. Enter Form 1099-R with code J and continue through the questions
7. On the "Review your 1099-R info" screen click "Continue"
8. Answer "Owned Any Roth IRA for Five Years?" screen
9. Answer "Yes" to "Any nondeductible Contributions to your IRA?" since you had any nondeductible contributions in prior years (from the recharacterization).
10. Answer the questions about the basis from line 14 of your 2022 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs
11. On the "Enter Prior Year Roth IRA Contributions" screen enter your contributions minus distributions from prior to 2023 (including the 2021 excess contribution).