Reporting timely correction of excess Roth IRA contributions without earnings for 2024?

[Juno11]

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!

[DavidD66]

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: 

• Wait until you receive the 2025 Form 1099-R in 2026 and amend your 2024 return or
• Report it on your original 2024 return and ignore the 1099-R when it comes.

You can create a Form 1099-R in your 2024 return as follows:

1. Make sure you are logged in to your return 
2. Click on the "Search" on the top right and type “1099-R” 
3. Click on “Jump to 1099-R”
4. Answer "Yes" to "Did you get a 1099-R in 2024?"
5. Select "I'll type it in myself"
6. Box 1 enter total distribution
7. Box 2a enter the earnings (if applicable)
8. Box 7 enter J and P
9. Click "Continue"
10. On "Is the IRA/SEP/SIMPLE box on this 1099-R checked?" screen answer "No, the box is blank"?
11. On the "Which year on Form 1099-R" screen say that this is a 2025 Form 1099-R.
12. Click "Continue" after all 1099-R are entered and answer all the questions.
13. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Corrective distributions made before the due date of the return".