Roth IRA Excess Contribution before Tax due date

[atito]

During 2016 I realized I made an excess contribution to my 2015 Roth IRA. I removed the excess before 2015 due date but after I filed my tax return. I understand since I took the money out before the tax due there is no need to fill out form 5329. The only think I need to report is any earnings associated with the amount during the period of time the money was in the account. I actually got a lost as per calculation from my broker (original contribution was 5500 and I got ~5350 back) so I don't think there is anything to report. I got a 1099-R form during Q1 2017. Do I need to include this form in my 2016 tax return? Do I need to do anything else? Turbotax pulled it from my broker account and is creating a 5329. Please advise.

[ChristinaS]

Is it code P in Box 7?- that means "Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2015" if on a 2016 Form 1099-R.

Assuming so- The 1099-R relates to your 2015 tax return, not your 2016 return. When an excess contribution is withdrawn, it is common to prepare a "mock" 1099-R to report earnings in the year of the contribution, as the real 1099-R doesn't come until a year later. Since you have no earnings, it is unlikely that you either need or have reason to amend the 2015 return. The taxable amount should already be reported as $0 on the 1099-R, and a loss on a corrective distribution is not deductible.

[atito]

Yes, it says "PJ" and the taxable amount is $0 on the 1099-R. Should I then remove it from my 2016 tax return and just keep it for my files?

[ChristinaS]

Correct... a 2016 1099R with a Code P wouldn't even end up on your 2016 return. Turbo Tax will tell you to amend 2015. Because there's really nothing to amend, you can simply do nothing and keep the form with your 2015 records.