While doing my 2022 taxes, I realized that our MAGI exceeded the allowed limits to contribute to a Roth IRA in 2022. My wife and I both contributed the maximum amount in 2022.
1- I requested that my financial institution remove the 2022 deferrals before the April 15th due date which has been completed.
2- I contacted my financial institution to get the total distribution and the earnings so I can fill out a 1099-R on my 2022 tax forms.
3- To avoid amending my 2022 tax returns next year, I am filling out two (2) 1099-R forms on my 2022 tax returns ( one for me and one for my wife), but I have a few turbo tax questions:
Yes, you can ask your financial institution for the information (address and Payer's TIN).
Yes, the total distribution is entered in box 1. If you had a loss enter $0 in box 2a.
Yes, box 7 will be J and P.
Yes, no other boxes will be filled out.
If you are over 59 1/2 you will enter the amount from box 2a under "Another reason" ($0 in your case since you had a loss so you don't need to enter anything if you didn't have earnings).
For the explanation: Return of excess contribution for 2022 of $xxxx (contribution amount) with a loss of $xxx (or if you had earnings "with earnings of $xxx")
To create a Form 1099-R in your 2022 return please follow the steps below:
Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2021" you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2022.