What will a 1099R for an excess Roth Contribution look like? I asked for 200 to be returned but due to loss received 190, will the 1099R have the amount of 190 in box1?

[dmertz · Accepted solution]

I'll assume that the return of contribution was made in 2016 or you would already have the Form 1099-R and wouldn't be asking this question.

The Form 1099-R will have  $190 in box 1 and $0 box 2a.  The code in box 7 will be either code JP if the contribution that was returned was made in 2015 or code J8 if the contribution that was returned was made in 2016.  A code JP 2016 Form 1099-R is reported on your 2015 tax return while a code J8 2016 Form 1099-R would be reported on your 2016 tax return.

With no tax withholding, the details of the Form 1099-R will not be included with your tax return, either e-filed or mailed, so it doesn't matter much what you put in for the payer information.

[shauna9]

Dmertz thank you.  Those dollar amounts are just representative of my loss, but yes they were made in 2015 with the contributions returned before the tax filing deadline.  The 1099-R will be dated 2016. I am familiar with your other posts but what I found referenced making a profit. I was wondering if I needed to report the mock 2016 1099-R on my taxes for 2015, but it sounds like I don't, as if I enter it in either on my 2015 or 2016 taxes the results would be as if I had entered nothing due to the amount in box 2a being zero.  Right?

[dmertz]

The mock code JP 2016 Form 1099-R *should* be reported on your 2015 tax return.  Because there was a loss and the amount in box 2a will be zero, there are no taxes or penalties due as a result of this distribution.  However, the IRA wants to see the gross distribution amount included in From 1040 box 15a or Form 1040A box 11a.  Entering the mock Form 1099-R will also cause TurboTax to prompt for the explanation statement that will be included with your tax return where you will indicate that your had $200 of contribution returned but only $190 distributed as a result of account losses between the time of the contribution and the time of its return.

(Without an explanation statement, there will be nothing to document the amount of contribution returned.  From the eventual Form 1099-R from the payer, the IRS will only be able to determine the amount distributed, not the amount of contribution returned.  They'll only know that you had *at least* $190 of contribution returned.  This is because negative numbers are not permitted in box 2a of the Form 1099-R.)

[shauna9]

Thank you, I do believe I can manage this now.  You are my hero!

[navygirl544]

I had the same issue, contributed too much to my roth IRA in 2015, withdraw the excess contributions prior to filing my taxes but due to a loss received less. Going back through my taxes, I didn't have anything entered on my 1040 box 15a for 2015. Should I amend my 2015 tax return? The 1099-R is for 2016.

[dmertz]

With no earnings shown in box 2a of the 2016 From 1099-R, there is no need to amend your 2015 tax return.  In case the IRS ever questions the return of contribution, just be sure to retain records showing how the adjusted amount distributed was calculated.