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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.

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Accepted Solutions
dmertz
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.



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1 Reply
dmertz
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.



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