I made a ROTH contribution in 2025 but found out after filing my 2025 return it was not allowed and had Schwab withdraw it at a loss. Do I need to report this? If so how?

[ThomasM125 · Accepted solution]

You will need to amend your 2025 return to report the IRA distribution.

To enter a refund of excess IRA contributions received in 2026 for 2025 contributions on your 2025 return, follow these steps:

1. Go to the personal income section of TurboTax
2. Find the Retirement Plans and Social Security menu option in the Wages and Income section of TurboTax
3. Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
4. Choose Add Another 1099-R
5. Choose I'll type it in myself
6. Enter your distribution information on the 1099-R template
7. Enter the distribution amount in box 1 of the substitute 1099-R
8. Enter the earnings in box 2(a)
9. Enter code "P" in box 7 (And code "J" if from ROTH IRA)
10. On the screen that says Do Any of these Situations apply to you? Choose I need to file a substitute Form 1099-R and follow the instructions

[jarper]

Thank you for the guidance. submitted in tonight and seemed to go fine

[jarper]

Return was accepted by IRS this morning following this guidance!