tt excess contribution info

Forum|Forum|2 years ago
March 15, 2024
1 reply
1 view

please see attached screen shot. It asks for my "excess Roth IRA contributions for prior years". I do not know what amount to use. I made excess contribution in Jan 2022 but then subsequently took distribution of that contribution PRIOR to submitting my 2022 tax return and did not receive 1099R until Feb 2024 (form date was 2023 form 1099R). so I don't know what amount to use in that page attached. do I NOT include that excess contribution since i received distribution of it prior to return due date?

DanaB27

Level 15

Yes, you do not enter an excess contribution for prior years. You do not have an excess contribution since you remove the excess with the earnings before the due date.

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gjgogolAuthor

Level 5

@DanaB27 TT gave me a "warning" about amending prior year (2022) return (please see attached screen shot). My earnings on this 2022 excess contribution was a loss due to value of shares decreasing. So I contributed $7K in Jan 2022 and my distribution (March 2023) was $5900.

The 2023 Form 1099R also had code P--Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2022 in box 7. Do I need to amend my 2022 return for any reason?

gjgogolAuthor

Level 5

You do not need to amend your 2022 tax return to include the 2023 Form 1099-R for the removed excess contribution since you had a loss. Only earnings would be taxable in 2022.

If you insist on amending your 2022 tax return, then you can enter Form 1099-R as regular Form 1099-R and just enter the correct codes P and J.

@DanaB27OK I am confused and I apologize. I was referring to the code in box 7 on 2023 1099R form that was provided to me. They have code P only for my 2022 distribution. I thought you said that it should be codes J and P. I spoke to my financial institution about changing it and they are reluctant to update the 2023 1099R form. My question is what do I do if they don't update the 2023 1099R form to include both codes J and P?