Reporting excess Roth contributions for 2024 and 2023

[stong]

On 2/2/24 I inadvertently contributed 4,500 to my Roth IRA for tax year 2023; and 5,000 to my Roth IRA for tax year 2024. I reversed the transactions when I found out I was over the Roth income limits.

On 2/6/24 my financial institute sent me checks for 400; 4,500; and 5,400 and said the excess contributions and earnings will be reported on 1099Rs in 2025.

In 2025, I received 2 1099Rs for tax year 2024.

1099R #1 – box 1: 5800; box 2a: 800; box: 7 8J – other boxes blank

1099R #2 – box 1: 4500; box 2a: 0.00; box 7: PJ – other boxes blank

I’m using Turbo tax desktop.

Q1: “For Corrective distributions made before the due date of the return”, do I enter 800 (from 1099R#1 box 2a)?

Q2: I don’t think I need to file an amended 2023 return because there were no earnings on the 4500 contribution I made in 2024 for tax year 2023 (as supported by 1099R#2 box 2a $0.00, and code PJ?

Q3: A follow-on screen asks “Explain the Return of Contribution” – Can I just say “Return of excess Roth contributions made in 2024 for tax years 2023 and 2024”?

If more info is required, what else do I include?

Thank you.

[fanfare]

The corrective distributions made before the due date are:  $9,500

@stong 

[DanaB27 · Accepted solution]

Q1. On your 2024 return you will enter the earnings of $800 under "Corrective distributions made before the due date of the return" on the "Did you use your IRA to pay for any of these expenses?" screen.

Q2. If you didn't have any earnings on your 2023 excess contribution then you do not have to amend your 2023 tax return. Only the earnings on the 2023 excess contribution would be taxable in 2023.

Q3. The follow-on screen  “Explain the Return of Contribution” asks about the Form 1099-R codes 8J. You can state "Return of excess Roth contributions plus earnings made for 2024". Please note you do not need to enter the 2024 Form 1099-R with codes PJ on your 2024 return unless you had taxes withheld.

@stong