How to Report 2024 Roth IRA Excess Contributions Removal on 2024 Return without 1099-R?

[fastesthorse]

Hello,

I need someone to confirm the correct steps for reporting an excess Roth IRA contribution removal on my 2024 return.

My Situation:

• In 2024: I inadvertently contributed $7000 to my Roth IRA but had $0 earned income.

• In 2025: Before my extended filing deadline (Oct 15), I had Schwab process a "return of excess contribution."

    • This was done as an in-kind distribution, meaning the mutual fund shares were moved directly from my Roth IRA to my taxable Schwab One account without being sold.
    • No federal or state taxes were withheld ($0).

• Earnings: The gross distribution was $10,195 so the taxable earnings are $3,195 (10,195-7,000).

• The problem: I won't get an official 1099-R until 2026, but I know the earnings are taxable on my 2024 return.

My Goal: I want to file a complete and accurate 2024 return now without needing to amend it in 2026.

Proposed Steps in TurboTax:

Based on forum research, it seems I should manually enter a 2025 Form 1099-R.

Could you please confirm if the following steps are the correct way to handle this?

Step 1: Fill 1099-R Details

• Who paid you?: CHARLES SCHWAB & CO., INC.
• Payer's TIN: 94-1737782
• Box 1 (Gross): $10,195

• Box 2a (Taxable): $3,195

• Box 4: $0
• Box 7 (Codes): Check "I have more than one value in Box 7" and enter codes P and J.
• Leave unchecked the "IRA/SEP/SIMPLE is checked" Checkbox (Because the help text says this is not for Roth IRAs).

• State Info: Box 14 (Withheld): $0, Box 15 (State): Ohio, Box 16 (Distribution): $10,195. (Should I be leaving these boxes blank or fill them like this?)

• Leave other fields blank

Step 2: "What year is on your CHARLES SCHWAB & CO., INC. 1099-R?"

[  ] 2024

[X] 2025

(This probably triggered because of P and J codes?)

Step 3: "Do any of these situations apply to you?" checkboxes

[  ] I took out this money due to a qualified disaster

[  ] I need to file a substitute 1099-R 

[  ] The corrected box is checked on this 1099-R

[X] None of these apply

As I have not received 1099-R from Schwab yet, and this is like a "pretend" 1099-R, should I be checking the second option "I need to file a substitute 1099-R" OR just select "None of these apply" because I'm indicating that it's a 2025 1099-R in previous question?

Step 4: Penalty Exception

Enter the earnings ($3,195) next to "Corrective distributions made before the due date of the return."

Step 5: Explain the Return of Contribution

Finally, it asks for a description. Is the following statement clear and sufficient for the IRS?

TIMELY RETURN OF EXCESS 2024 ROTH IRA CONTRIBUTION, REMOVED BEFORE EXTENDED DUE DATE (OCT 15, 2025). EXCESS WAS DUE TO $0 EARNED INCOME.

Thank you for the help!

@AnnetteB6 @DanaB27 @MinhT1 @Annetteb65 @everyone

Here are the screenshots for easy review:

[fastesthorse]

Today is the extended filing deadline (Oct 15, 2025), so could someone please take a look at this?

@AnnetteB6 @DanaB27 @MinhT1 @Annetteb65  @everyone

[fanfare]

Using code "PJ" and marking the 2025 Box is the correct way to do it.

Only the earnings should be included on your Form 1040 column b

@fastesthorse 

[fastesthorse]

This is how it showed up on my Federal 1040:

1. The total distribution appeared on 4a and earnings appeared on 4b.

Should it not have populated 4a?

2. Form 5329 was generated like this:

3. It also added the statement about the return of contribution that I had written:

4. It showed up like this in the state return:

5. I didn't see any indication that the 1099-R I entered was for 2025 as selected in the form (Code P J). Where do I see this info in 1040?

Did I do this right, or did I make any mistake?

@fanfare @AnnetteB6 @DanaB27 @MinhT1 

[fanfare]

Your return is correct. You can file it . 

@fastesthorse 

[fastesthorse]

Thank you for the confirmation.

Last question: I had also filled state boxes 14, 15 and 16. Should I have or should I have not?

@fanfare 

[fanfare]

That Box 16 should be ignored. Review your state 1040 for the correct taxable amount.

@fastesthorse 

[fastesthorse]

The state return put the correct taxable amount there (10,195 - 7000) even though I had filled Box 16 with total distribution (10,195). 

My reasoning to fill that Box was that I should let state know of the distribution as well. (Google Gemini insisted me to fill that box  😃.)

Looks like the state return just got line 11 from Federal return in its line 1. And the state distribution value (10,195) that I had entered in Box 16 field above doesn't appear anywhere in the state return.

Federal return:

Does it mean everything was done correctly? Do you have anything I should double check?

PS: I had already submitted it on deadline day (Oct 15, 2025).

@fanfare 

[fastesthorse]

My e-file was first rejected due to this unrelated issue.

So when I e-filed again, I left empty Box 4, 14, 15, 16 and it generated the same exact 1040. So I went ahead and filed it with confidence.

In summary, this is basically how I filled the 1099-R form:

Thank you for the help @fanfare !