Roth IRA Excess Contribution from 2022

[jakiedaniels]

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

[DanaB27]

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.