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katsbirds
New Member

Excess Roth IRA contribution in 2022

I had an excess contribution of $3344 in 2022, but removed $3350 in April 2023 BEFORE I filed my 2022 taxes.

I received a 2023 1099-R and entered it on my 2023 taxes. Do I need to declare the excess as a distribution on my 2023 taxes? And why is it telling me I need to amend my 2022 tax return?

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5 Replies
DaveF1006
Expert Alumni

Excess Roth IRA contribution in 2022

 

Your earnings must be reported as  taxable income for the year the excess contribution was made, so you’ll still receive a 1099-R to report these earnings on your tax return. You will need to amend your 2022 return to report the earnings. Here is how to report.

 

To amend your return using Turbo Tax Online.
 

  1. Log into Turbo Tax
  2. Select Scroll down Your tax returns & documents in your landing page.
  3. Select Amend (change) 2022 return. 

To amend using the 2022 Desktop Software, go to:
 

  1. Federal Taxes
  2. Other Tax Situations>other tax forms
  3. Amend a return

Now you need to create a substitute 1099R.

 

  1. Go to Federal
  2. Wages and Income
  3. Retirement Plans and Social Security
  4. IRA's, 401K etc.
  5. In the Box that asks what type of 1099 R, check the first Box. In the same screen, check the box indicating you need to prepare a substitute 1099R.
  6. Now fill in the 1099R information. You will need to get the payer's information so you will need to get the payer's name address EIN to fill in as much information as possible. 
  7. In the Gross Distribution Amount, put in the full amount of the contribution
  8. In the taxable amount, put in the earnings because these are taxable even though withdrawn.
  9. For the codes reported in Box 7, use J in the first Box and P in the second.
  10. Complete the rest of the interview.

You will receive a 1099R for this event next year but you do not need to report this since you are reporting this for year 2023.

 

[Edited 04/09/24|7:54 pm PST]

 

@katsbirds 

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Excess Roth IRA contribution in 2022

"$3344 in 2022, but removed $3350. " 3350  - 3344 is $6, which should be in box 2a

"why is it telling me I need to amend my 2022 tax return?"

That's because the distribution and your $6 of earnings is to be reported on your 2022 tax return, not 2023.

 

however, since the tax on $6 is negligible, you can ignore that.

The $6 does not go on your 2023 tax return.

@katsbirds 

 

@DaveF1006 keeps posting his wrong answer to this question.

katsbirds
New Member

Excess Roth IRA contribution in 2022

I have a 1099-R for 2023, because the $3350 we removed in April 2023 was then cashed out in December 2023 and put in as a cash contribution for 2023 (we did that on April 4, 2024).

I transferred the 1099-R information into Turbo Tax.

Not sure if I have to declare an early distribution from my Roth IRA or anything else.

I have a Capital Gain and that's fine.

The only thing I don't like is amending my 2022 return since I don't want to mess things up even more.

 

katsbirds
New Member

Excess Roth IRA contribution in 2022

Darn it. I just noticed that I filed my taxes early in 2023, because I was going out of the country.

So I filed taxes on 3/17/23 and did not remove the excess contribution until April.

I guess I do have to amend the 2022 return.

Excess Roth IRA contribution in 2022

if you removed 2022 "excess plus earning" in April and then another distribution in 2023, you would get two 1099-Rs.

The first would be code PJ.

Is that what happened?

What are the second 1099-R code(s).

@katsbirds 

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