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Level 2
posted Feb 27, 2025 4:30:14 PM

Roth IRA Excess Contribution from 2022

We both made a $7,000 contribution to a Roth IRA in 2022 and due to a sale of property had excess income.  We paid the 6% penalty when filing in 2022.  In 2023 claimed we still had excess Roth IRA, no penalty was listed on Form 5329.  In 2024, I removed the $7,000  from the my Roth IRA and received a 1099-R.  My husband had the funds moved from his Roth IRA in 2024 and put into his 401K plan with the same company that we had our Roth IRA's with.  I am not sure how to enter on this year's (2024) tax return.  I am also wanted to go back and check if the 2023 return Roth IRA info was entered correctly.  Any suggestions on how to be rid of this fiasco once and for all??  Thank  you

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3 Replies
Expert Alumni
Feb 28, 2025 3:19:04 AM

You can check your 2023 Form 5329 part IV, if the excess was applied as 2023 Roth IRA contribution. 

 

You will enter the Form 1099-R into TurboTax. Your Form 1099-R should have code J showing a regular distribution since you removed the excess contribution after the due date. This distribution shouldn't include any earnings. If the excess wasn't applied as a 2023 contribution this will resolve the excess contribution.

 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top and type “1099-R” 
  3. Click on “Jump to 1099-R” and enter all your 1099-Rs
  4. Click "Continue" on the "Review your 1099-R info" screen after you entered all you Form 1099-R
  5. Answer "Owned Any Roth IRA for Five Years?" screen
  6. Continue through the questions and make sure you enter the net contributions prior to 2024 on the "Enter Prior Year Roth IRA Contributions" screen

 

To clarify, you husband moved after-tax funds from a Roth IRA to a traditional 401(k)?  That shouldn't be possible. Please see IRS Rollover Chart for additional information.

Level 2
Feb 28, 2025 9:26:04 AM

Thank you.  Both of our 2023 5329 forms have the following.  Line 18-7,000; 19-7,500; 20-blank; 21-7500, 22-25 is 0.

 

I just verified with my husband and the Roth IRA investment was sold and is now a cash balance in excess of the initial 7,000 is sitting in the account.  So I guess it still needs to be taken care of?   What a freaking nightmare!  

 

The code on my 1099-R is "T"

 

Thank you again for your assistance. 

Expert Alumni
Mar 1, 2025 6:56:28 AM

It seems your excess contribution was applies as a Roth IRA contribution for 2023 and therefore the excess was resolved in 2023. To confirm, you didn't make any IRA contribution for 2023?

 

If his line 24 on his 2023 Form 5329 shows an excess contribution then you might be able to apply it as an 2024 Roth IRA contribution if he didn't make any IRA contributions and your MAGI allows Roth IRA contributions.

 

  1. Click on "Search" on the top right and type “IRA contributions”
  2. Click on “Jump to IRA contributions"
  3. Select “Roth IRA”
  4. On the "Do you have any Excess Roth Contributions" answer "Yes"
  5. On the "Enter Excess Contributions" screen enter the total excess contribution (if it wasn't carried over).
  6. On the "How Much Excess to 2024?" screen enter how much you want to apply to 2024.

If he cannot apply the excess to 2024 then he will have to take a regular distribution to remove the excess. He will get a 2025 Form 1099-R and this will be entered on your 2025 return and then resolve the excess contribution.

 

 

If you had your Roth IRA for 5 years then your distribution is a qualified distribution and won't be taxable.