Roth IRA

[MsSlowky]

After filing our 2024 return we found out that the Roth IRA contribution we made in 2024 isn't allowed due to our AGI being over the limit.  We removed the funds plus earnings from the account and received a 2025 1099R.  Do we need to amend our 2024 return and pay the penalty or wait until 2025 to file and claim the penalty then?   Thak you.

[fanfare]

If you timely filed ( April 15) you have until Oct 15 to remove the excess plus earnings, which you did, without penalty.

if the earnings were greater than Zero, that is a taxable amount to be reported on your 2024 tax return via Form 1040-X.

@MsSlowky 

Usually the true 2025 1099-R comes in February 2026. What are you looking at and what is the taxable amount shown?