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New Member
posted Mar 25, 2025 12:59:25 PM

If I did a removal of excess contribution in Feb25 for Roth contributions on 2024 (MAGI too high), what do I need to report on my 2024 tax return, if anything?

Do I report making Roth Contributions in 2024 even though this has been corrected prior to the Tax Filing Deadline? The contributions as well as gains on those contributions were removed from the Roth IRA accounts in February 2025 after making the request. Do I just report all of this during the tax year that the mistake was corrected (2025)?

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1 Replies
Expert Alumni
Mar 25, 2025 1:05:56 PM

If you withdrew all of the Roth IRA contribution (plus earnings) then you do not need to enter the Roth IRA contribution in the IRA contribution interview under Deductions & Credits. If you already entered it you indicate in the IRA contribution interview that you withdrew the excess contribution by the due date:

 

  1. Click on "Search" on the top right and type “IRA contributions”
  2. Click on “Jump to IRA contributions"
  3. Select “Roth IRA”
  4. Enter the Roth IRA contribution
  5. Continue until the penalty screen and enter the excess contribution amount as withdrawn.

 

 

The earnings are taxable in the year the excess contribution was made.

 

If you made an excess contribution in 2024 and withdrew the 2024 excess Roth IRA contribution plus earnings in 2025 before the due date, then you will get a 2025 Form 1099-R in 2026 with codes P and J. This 1099-R will have to be included on your 2024 tax return and you have two options:  

  • You can wait until you receive the 2025 Form 1099-R in 2026 and amend your 2024 return or
  • You can report it now in your 2024 return and ignore the 1099-R when it comes unless there is Box 4 Federal Tax withholding and/or Box 14 State withholding. Then you must enter the 2025 Form 1099-R into the 2025 tax return since the withholdings are reported in the year that the tax was withheld. The 2025 code P will not add anything to your income in the 2025 tax return but the withholdings will be applied to 2025.

 

To enter a 2025 Form 1099-R in your 2024 return please follow the steps below:

 

  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 2024?"
  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 "Is the IRA/SEP/SIMPLE box on this 1099-R checked?" screen answer "No, the box is blank"?
  11. On the "Which year on Form 1099-R" screen say that this is a 2025 Form 1099-R.
  12. Click "Continue" after all 1099-R are entered and answer all the questions.
  13. 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".

 

Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2023" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2024.