For tax year 2024, I made $285 excess contributions to my son's custodial roth IRA (he's a baby model and I had to file his own taxes for making more than $400 reported on 1099-NEC in 2024). I caught the mistake and today 3/31/25 filed document for Schwab (IRA provider) to withdraw the excess contributions, which did NOT have any associated earnings (I forgot to invest them after depositing, so they have sat in cash without any gains or losses). Should be corrected before April 15th deadline. How do I report this on a manual 1099-R? I would like to avoid having to amend taxes next year when Schwab sends their 1099-R for the withdrawal. I understand I should enter $285 in Box 1, I believe i should enter $0 in Box 2a (since there were no earnings/gains and therefore nothing to tax, but please correct me if I'm wrong), but for Box 7 code I've read a lot of different scenarios and combinations of P and J but wasn't sure what fit a timely correction of excess contributions with no earnings? Is my assumption correct about entering $0 in Box 2a? Thank you!
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For a return of an excess Roth IRA contribution (with earnings when applicable) you will use code codes J and P. Code P will indicate a "Return of contribution taxable in 2023". That can be ignored since a follow-up question will tell the program that it is taxable in 2024.
Since you made a "timely correction" you will receive a 2025 Form 1099-R in 2026 with codes P and J. This 1099-R will have to be included on your 2024 tax return and you have two options:
You can create a Form 1099-R in your 2024 return as follows:
Deleting my follow up question, Never mind thank you for the help!
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