Roth Excess Contribution 2023 and 2024 Corrected Timely in 2024 on 2023 Tax Return but 2025 1099R received and owing tax

[help121]

Hello

I contributed to Roth in 2023 but should not have; I also had started to contribute towards 2024. When I realized before April 15 2024- immediately did an extension so I could figure stuff out by October 2024; I did the withdrawal of excess contributions. However I couldn't get help from turbotax on what to do on the turbotax software. I tried to read these forums but there was conflicting info. Also following the info, it wasnt adding my gains on those funds as taxable on the 1040. So I either changed the codes until it worked or whatever to make it work to pay taxes on it and remove those amounts in early 2024 for the 2023 Tax Filing Year.

Now in April 2025, I'm getting 1099Rs and they have code J on the amount I already withdrew in 2024 as accidentaly 2024 contributions; I thought i already paid tax on this gain last year by adding all the gains on 1040. Second, it also shows a 1099R for the 2023 excess contribution that i removed for the Filing Year 2023 in 2025 for Tax Year 2024 as PJ. 

What is going to happen now?? how do i make sure i'm not paying taxes or penalties on contributions fixed in the correct year - why is this coming to haunt me in the 2024 filings???

Do I need to hire someone to just fix everything ? do i just pay double tax again all over to save time and call it a day??? I do not want to waste any time on this anymore

[DanaB27]

To clarify, did you request the return of excess contribution plus earnings or just took a distribution? 

If you requested the return of excess contribution plus earnings then you should have a 2024 Form 1099-R with code P and J for the 2023 excess and a 2024 Form 1099-R with code 8 and J for the 2024 excess returned in 2024.

The 2024 Form 1099-R with code P and J belongs on your 2023 return and you should have the earnings from box 2a listed on line 4b on your 2023 Form 1040 (assuming you had no other IRA distribution in 2023). If you didn't report the earnings correctly then you have to amend your 2023 return to add the 2024 Form 1099-R with codes P and J and make the necessary corrections. Please see How do I amend my federal tax return for a prior year?

1. Click on the "Search" on the top right and type “1099-R” 
2. Click on “Jump to 1099-R”
3. Enter the 2024 Form 1099-R with code P and J
4. On the "Which year on Form 1099-R" screen say that this is a 2024 Form 1099-R.
5. Click "Continue" after all 1099-R are entered and answer all the questions.
6. 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".

Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2022" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2023.

You should check with your custodian why you got a 2024 Form 1099-R with code J instead of codes 8 and J for the return of the 2024 excess contributions plus earnings.