I contributed $7500 to a ROTH IRA (bank CD) in 2023. The entire amount is an excess contribution and I plan to withdraw it and the earnings in full prior to filing 2023 taxes. The recent 'Roth IRA Excess Contribution' thread addresses this topic in detail but I have one question regarding the instructions in that thread for Box 7 entries on the 1099-R being created (step 8 of the instructions - extracted & posted below for convenience).
I understand the reason for entering code P (excess contributions were deposited in 2023 and returned in 2024) but I don't understand the reason for entering code J in Box 7. Isn't code J for IRA owners under age 59½? In my case I'm in my 60s - would I use or omit code J?
1. Login to your TurboTax Account
2. Click on the "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R”
4. Answer "Yes" to "Did you get a 1099-R in 2023?"
5. Select "I'll type it in myself"
6. Box 1 enter total distribution (contribution plus earning)
7. Box 2a enter the earnings
8. Box 7 enter J and P
9. Click "Continue"
10. On the "Which year on Form 1099-R" screen say that this is a 2024 Form 1099-R.
11. Click "Continue" after all 1099-R are entered and answer all the questions.
12. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of
earnings under "Corrective distributions made before the due date of the return".
