Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Jan 17, 2025 12:42:12 PM

Roth IRA Overcontribution. Where to enter the gain?

I over contributed to a Roth. I noticed quickly enough but by the time it was backed out it had an earnings of 73 USD. It was in the Roth for about 3 weeks and did not cross tax years.

Where does this amount go on the 2024 tax return?

 

Thanks

0 5 1829
1 Best answer
Level 15
Jan 17, 2025 2:51:01 PM

Assuming that this was a contribution for 2024 made in 2024 and returned in 2024, you'll receive a Form 1099-R  with codes J and 8 in box 7 that must be entered into TurboTax.  On the Form 1099-R the $73 will be present in box 2a and will be included in box 1 along with the amount of the contribution that was returned.  TurboTax will include the $73 on Form 1040 line 4b as taxable.

5 Replies
Level 15
Jan 17, 2025 2:51:01 PM

Assuming that this was a contribution for 2024 made in 2024 and returned in 2024, you'll receive a Form 1099-R  with codes J and 8 in box 7 that must be entered into TurboTax.  On the Form 1099-R the $73 will be present in box 2a and will be included in box 1 along with the amount of the contribution that was returned.  TurboTax will include the $73 on Form 1040 line 4b as taxable.

Expert Alumni
Jan 18, 2025 8:10:40 AM

The earnings on the excess contribution should be reported on your return as a taxable distribution from your Roth IRA. You should receive a Form 1099-R with the earnings showing as the taxable amount and a code 8 in box 7.

 

 

Level 2
Jan 22, 2025 12:07:02 PM

Thanks much appreciated. Yes it was all 2024 and was in for a matter of 3 weeks before being backed out.

Level 2
Jan 22, 2025 12:07:56 PM

Thanks much appreciated.

Level 2
Jan 22, 2025 12:08:48 PM

Thanks much appreciated. Yes it was all 2024.