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Returning Member
posted Apr 3, 2024 4:21:06 PM

Removal of excess contribution in 2023

Hello, I realized that I was not eligible for an IRA contribution in 2023 since I went over the AGI limit after inputting data on turbo tax when filing for tax for 2023 tax return. The excess contribution was made in 2023 and I had withdrawn the excess contribution in March of 2024. 

 

My question is since I selected Federal and State tax withholding from that withdrawal. I will have to report the earnings from the excess contribution in 2024. But do I still need to file an amendment for the 2023 tax return?

 

Thank you.

0 1 1722
1 Replies
Level 15
Apr 3, 2024 4:32:45 PM

return of excess contribution:

before tax filing date including extension: positive earnings allocable to the excess are included in income on 1040 Line 4b for the year of the contribution. negative earnings are ignored; in any case, for purposes of basis, consider the original requested amount as returned.

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This goes on your 2023 tax return.

If you wait for the 1099-R, you will have to amend.

 

 

@wahts2