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vsteyer7
New Member

How do you correctly file an excess contribution to a ROTH IRA on the Turbo Tax system? Also, how would you include the earnings from that excess as well?

This in regards to my 2020 Roth Ira Contribution
1 Best answer

Accepted Solutions
RayW7
Expert Alumni

How do you correctly file an excess contribution to a ROTH IRA on the Turbo Tax system? Also, how would you include the earnings from that excess as well?

 

You can report the withdrawal of the excess contribution on your 2020 return.

  1. Open (continue) return if you don't already have it open.
  2. Inside TurboTax, search for 1099-R and select the Jump to link in the search results.
  3. Answer Yes on the Your 1099-R screen,
  4. Click on the box that you are creating a substitute 1099-R
  5. Then select Continue.

The codes you will need for box 7 are J and P.

Since this is a Roth IRA the only amount that is taxable are any earnings on the excess contribution.

 

You will receive a 1099-R for the withdrawal in 2021 you do not need to report the information since you have reported it on your 2020 tax return.

 

If you withdrew the complete contribution with all earnings then you do not have to include the contribution on your tax return.

 

 

 

View solution in original post

3 Replies
RayW7
Expert Alumni

How do you correctly file an excess contribution to a ROTH IRA on the Turbo Tax system? Also, how would you include the earnings from that excess as well?

 

You can report the withdrawal of the excess contribution on your 2020 return.

  1. Open (continue) return if you don't already have it open.
  2. Inside TurboTax, search for 1099-R and select the Jump to link in the search results.
  3. Answer Yes on the Your 1099-R screen,
  4. Click on the box that you are creating a substitute 1099-R
  5. Then select Continue.

The codes you will need for box 7 are J and P.

Since this is a Roth IRA the only amount that is taxable are any earnings on the excess contribution.

 

You will receive a 1099-R for the withdrawal in 2021 you do not need to report the information since you have reported it on your 2020 tax return.

 

If you withdrew the complete contribution with all earnings then you do not have to include the contribution on your tax return.

 

 

 

View solution in original post

vsteyer7
New Member

How do you correctly file an excess contribution to a ROTH IRA on the Turbo Tax system? Also, how would you include the earnings from that excess as well?

Thank you Ray! I did remove the entire excess contribution and submit based on your instructions. However, I notice the 1099 R Substitute is not included in the 1040 summary. Should it be? If so, I may have made a mistake. 

DanaB27
Expert Alumni

How do you correctly file an excess contribution to a ROTH IRA on the Turbo Tax system? Also, how would you include the earnings from that excess as well?

Yes, ​​​​​​the total distribution should be on line 4a and the earnings should be on line 4b (taxable amount) of Form 1040.

 

Please enter the distribution as a regular 1099-R since you might not be able to e-file with a substitute 1099-R.

 

To create a 1099-R in your 2020 return please follow the steps below:

  1. Login to your TurboTax Account 
  2. Click on the Search box on the top and type “1099-R”
  3. Click on “Jump to 1099-R”
  4. Answer "Yes" to "Did you get a 1099-R in 2020?"
  5. Select "I'll type it in myself"
  6. Box 1 enter total distribution (contribution plus earning)
  7. Box 2 enter the earnings
  8. Box 7 enter P and J 
  9. Click "Continue"
  10. On the "Which year on Form 1099-R" screen say that this is a 2021 1099-R.

 

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