roth excess contribution 2025 -- removed but how to report in 2025 return

[kovairent]

Thanks in advance.

Made excess contribution to Roth IRA during the calendar year 2025.

Realized while doing tax return in Feb2026.  (let us say the excess payment as $ x )

Understand can be recharacterized or removed before 15Apr26 and avoid 6% penalty.

Spoke to ROTH IRA administrator, they were helpful, transferred the entire excess payment

and the earnings made by excess payment to my regular (non-Roth non-IRA) brokerage account

within the same brokerage company.

The transferred amount is $ y = $x + $e  (earnings made by $x during 2025). Obviously this earning 

was made in year 2025. [The transfer was done in Feb 2026 ]

How do I report this earning Earnings $e made in year 2025 in my tax return the form for year 2025.

But the brokerage says that they will provide a 1099-R only in Jan2027, which will not be useful for

filing 2025 tax return before 15Apr2026.

How does one handle this?

thanks and good day

[ReneV4]

Since your Form 1099-R will not arrive until 2027, here is how to manually report your earnings on your 2025 tax return:

First, determine the taxable amount. Only the earnings are taxable because the amount of the excess contribution was already taxed before it went into the Roth IRA.

Next, you will report the earnings even though you don't yet have the Form by following these steps.

1. Go to Income on the left panel within your TurboTax account
2. Click on the +Add more income box
3. Scroll down to Retirement Plans and Social Security and click the down arrow to expand
4. Click Start to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R)
5. Click on +Add a 1099-R, select the Enter a different way box, then Type it in myself
6. On the next screen, you can select Type it in myself, or other options, then Continue
7. Select the box on the top left for Financial institution or other provider (1099-R), then Continue
8. Enter the provider's information, then Continue
9. Enter the details from your Form 1099-R, enter total distribution in Box 1 and only the earnings in Box 2a
10. Ensure the IRA/SEP/SIMPLE box is unchecked
11. Use Distribution Code J & P in Box 7, then Continue
12. Choose Year 2026 as the year on your Form 1099-R
13. Continue until, "Tell us which person may have qualified for a penalty exception" and select the pencil symbol
14. Next, on the, "These situations may lower your tax bill" screen, enter the amount of earnings under, "Corrective distributions made before the due date..."

[kovairent]

Thank you ReneV4. This is very helpful, but I don't do online turbotax, but/instead of desktop version.

It would be great if you could walk the menu/steps for the desktop version for this.

Again thank you very much.

[MarilynG1]

The steps are the same for TurboTax Desktop, except access the Wages & Income section from the top, and scroll down to the Retirement Plans topic.

@kovairent