In 2015 I contributed over the limit to a ROTH IRA. In 2016 I withdrew the funds to correct this mistake.

[jharris4269]

I never invested the 2015 over-contribution.  My brokerage account sent me the  distribution on a 1099-R.

Does this have to be a taxable event?

[macuser_22]

What code is in box 7?
What is in box 2a?

[jharris4269]

Box 7:  "J"  Box 2a: blank (Box 2b: (X))

[macuser_22]

If you withdrew the 2015 excess contribution before the extended due date (Oct 18, 2016) of the 2015 tax return and you told the plan administrator that this was a excess contribution then the 1099-R should have had a code P in box 7 and any earnings in box 2a.   Only the box 2a earnings (if any) would be taxed on an amended 2015 tax return.  There would be no additional 6% excess contributions penalty since it was removed before the extended due date.

If removed after the due date then the code J is correct and the excess must be entered when the interview asks prior years contributions and the prior years excess contributions which will have a 6% penalty applied for the excess.  The excess contribution will offset any tax on the distribution.

If the excess was timely removed, then talk to the plan administrator for a corrected 1099-R.

[jharris4269]

It was removed on Oct 19, 2016... can't make this stuff up.  Thank you for your help.

[macuser_22 · Accepted solution]

Answered in comments