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How do I include the Roth IRA excess distribution gain on my 2023 taxes ? It was timely but Fidelity will only send me the gain letter. The 1099-R won't come until 2025.

Fidelity will only issue the earnings gain/loss in a letter to use for my 2023 taxes. In 2025, I'll get the official 1099-R. I have to include the gain/loss in my 2023 taxes to avoid any penalty. How do I include this in my Turbo Tax 2023 filing ? Any guidance would be appreciated. Thank you
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MinhT1
Expert Alumni

How do I include the Roth IRA excess distribution gain on my 2023 taxes ? It was timely but Fidelity will only send me the gain letter. The 1099-R won't come until 2025.

The correct way to deal with the 2023 excess contribution is to follow the instructions in this good answer by Tax Expert DanaB27.

 

@dmacjr15

@NY2NC95

 

I have edited my answer.

 

[Edited 3/24/24 | 9:34 AM PST]

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5 Replies
MinhT1
Expert Alumni

How do I include the Roth IRA excess distribution gain on my 2023 taxes ? It was timely but Fidelity will only send me the gain letter. The 1099-R won't come until 2025.

The correct way to deal with the 2023 excess contribution is to follow the instructions in this good answer by Tax Expert DanaB27.

 

@dmacjr15

@NY2NC95

 

I have edited my answer.

 

[Edited 3/24/24 | 9:34 AM PST]

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

How do I include the Roth IRA excess distribution gain on my 2023 taxes ? It was timely but Fidelity will only send me the gain letter. The 1099-R won't come until 2025.

thank you for the quick reply. I will update my 2023 taxes accordingly.

NY2NC94
New Member

How do I include the Roth IRA excess distribution gain on my 2023 taxes ? It was timely but Fidelity will only send me the gain letter. The 1099-R won't come until 2025.

Hi Minh,

The other TT answers to this question of pulling back an excess Roth contribution with earnings before the tax deadline for the year contributed talk about creating a 1099R.  Is your answer the better way of handling this issue? It certainly much easier.  Thanks.

How do I include the Roth IRA excess distribution gain on my 2023 taxes ? It was timely but Fidelity will only send me the gain letter. The 1099-R won't come until 2025.

Hello @MinhT1 @NY2NC95 --- I am about to file my 2023 taxes and I see there is still some confusion around how I should report my 2023 Excess Roth IRA contribution. Rather then putting the gain on excess as "Other Reportable Income", I should now follow the steps for generating a 1099-R for 2023 ? We did remove the excess amount from the Roth before the 2023 Tax deadline (April 15, 2024), so it is considered timely and therefore no penalty. I have the amount of the gain and will report that on my 2023 taxes. I am just confused on how to go about this in Turbo Tax for my 2023 filing. I am also under 59 1/2 so what codes do I select in the 2023 filing ? If you could shed some light in this that would be appreciated. Thanks again

RobertB4444
Expert Alumni

How do I include the Roth IRA excess distribution gain on my 2023 taxes ? It was timely but Fidelity will only send me the gain letter. The 1099-R won't come until 2025.

If you removed it before the due date of the return you can also just ignore this since there isn't a taxable event and the 1099-R that will be arriving later will have code 'P' on it.  But if you want to dot the i's and cross the t's then, as @MinhT1 pointed out above you should use this answer from @DanaB27.

 

@dmacjr15 

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