Solved: Should I use Code J or 8 for my 1099-R for Return of Excess Roth contribution for 2015 while preparing my 2015 Tax Return?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

Should I use Code J or 8 for my 1099-R for Return of Excess Roth contribution for 2015 while preparing my 2015 Tax Return?

I requested a Return of 2015 Roth IRA Contribution due to excess in contribution.  Since I made the original contribution in 2015 and now I'm preparing my 2015 Tax return, I don't have my 1099-R yet.   While entering Form 1099-R, TurboTax prompted me to prepare the explanation statement.  I'm plannning to put the following for my 2016 Form 1099-R will have: Box 1 = $6,200 Box 2a = 0 Box 7 = codes J.  I got advice to put code "P" in box 7 as well, but code "P" read "Contribution Returned for Taxable income for 2014"; however, I'm taking money out for contribution for 2015 and preparing my 2015 return.  Should I use code "8" instead?  "8" is for "Contribution Returned for Taxalbe income for 2015"?  Thanks.

1 Best answer

Accepted Solutions
Level 15

Should I use Code J or 8 for my 1099-R for Return of Excess Roth contribution for 2015 while preparing my 2015 Tax Return?

The 2016 return of a Roth IRA contribution made in 2015 should have codes J and P.

TurboTax's drop-down box text assumes that you are entering a 2015 Form 1099-R.  In this case, you are entering a 2016 Form 1099-R, so code P means taxable income for 2015.  In other words, code P for a distribution from an IRA always means that the distribution of the returned contribution occurred in the year following the year in which the IRA contribution was made.  A 2016 Form 1099-R with codes J an P means a the return in 2016 of a Roth IRA contribution made in 2015.



View solution in original post

1 Reply
Level 15

Should I use Code J or 8 for my 1099-R for Return of Excess Roth contribution for 2015 while preparing my 2015 Tax Return?

The 2016 return of a Roth IRA contribution made in 2015 should have codes J and P.

TurboTax's drop-down box text assumes that you are entering a 2015 Form 1099-R.  In this case, you are entering a 2016 Form 1099-R, so code P means taxable income for 2015.  In other words, code P for a distribution from an IRA always means that the distribution of the returned contribution occurred in the year following the year in which the IRA contribution was made.  A 2016 Form 1099-R with codes J an P means a the return in 2016 of a Roth IRA contribution made in 2015.



View solution in original post

Dynamic Ads
v
Privacy Settings