Two 1099-Rs: 2023 and 2024 IRA excess contributions

[DanaB27]

Thank you. I reviewed your token. 

You removed the 2023 excess before the due date, correct? Therefore, make sure that these amounts are not include on line 18 of Form 5329. When you remove an excess contribution plus earnings before the due date then you do not have an excess contribution for that year. Check that you didn't pay the 6% penalty for the 2023 excess contribution on your on your 2023 return. You should only pay the 6% on the 2022 excess on your 2023 tax return. 

You do not need to enter the 2024 Form 1099-R with codes PJ on your 2024 return since you don't tax withholdings in boxes 4 and 14. The 2024 Form 1099-R with codes PJ belongs on your 2023 return. If you didn't include them on your original 2023 return then you will need to amend your 2023 return.

Removing the 2024 1099-R with code PJ from your 2024 return will get you the "Did you use your IRA to pay for any of these expenses?" screen in the follow-up questions to get the exception from the 10% early withdrawal penalty.  Enter the amount of earnings under "Corrective distributions made before the due date of the return".

@TaxLiability 

[husky23]

@DanaB27 9130357880188236-31937279

Thank you!

Edit: hmm token is long enough to be redacted.. is there any better way to send it?

[DanaB27]

Thank you. I was able to read it and we are looking into this issue.

@husky23 

[husky23]

Hi @DanaB27 , were you able to figure anything out? Thanks again.

[AnnetteB6]

Thank you for providing the token number for your diagnostic file.  We are still working through the process of writing the report to submit to the development team for further investigation.  

@husky23 

[husky23]

Hi there, sorry to bump again but is there any update?

[husky23]

Last ditch bump @AnnetteB6 or @DanaB27 

I'm going to assume this is a TT bug. 

[DanaB27]

We have submitted the investigation report and waiting to hear back. Thank you for your patience.

@husky23