When exactly did a 1099-R event occur?

[Aminy]

I received a 1099-R for a small over-contribution to a 403b that I apparently received as a distribution.  The year at the top of the form is 2023, has code "P".  This means there was an overage was identified at the end of 2023, which I can address on this year's tax return, by reporting it as income?

Asking because TT inferred it happened in 2022, so I would need to amend a prior year's return.
Thanks for the hints!

[MarilynG1]

You probably don't need to Amend your 2022 return.  TurboTax alerts you in the event that you may need to.  Do you have any amounts in Box 2a, Taxable Amount? 

If not, enter the 1099-R with Code P in your 2023 return as it was issued and it will not change your return; you are just reporting the return of the excess contribution from 2022 with no associated taxable earnings. 

Here's more info on Form 1099-R with Code P.

@Aminy 

[Aminy]

Thank you, Marilyn.

There's `$150 taxable income listed in 2a - does that mean I need to amend 2022?  Still not clear when this happened.... would be nice if it was just clearly stated:)

[fanfare]

Code "P" stands for prior, not pool.

It is telling you to report the income on your 2022 tax return.

You would have to amend if you did not already include that amout on 2022 line 4b.

Obviously from your question, that didn't happen.

@Aminy 

[dmertz]

[Deleted.  See DanaB27's reply below.  An amount reported with code P for a distribution from a 403(b) represents just the excess which should have been reported on 2022 Form 1040  line 1h.  Earnings would instead be reported with code 8.]

[DanaB27]

You must include the excess deferral in your wages in the year the excess deferral happened. Check line 1h of your 2022 Form 1040 if you reported the excess deferral on your 2022 return. If not then you will have to amend your 2022 return and enter the 2023 Form 1099-R code P.

Please see Pub 525 for additional information.

@Aminy 

[Aminy]

Thank you to @DanaB27, @dmertz and @fanfare for their additional expertise.

I managed to find someone at Fidelity who could see they issued this 1099R.   The overage occurred sometime in calendar year 2022.  However I was only issued a check for the overage amount in calendar 2023, which (according to them) is the relevant date for taxes, so apparently I can just list it as other income/over contribution on this current year's taxes despite the P code.

[dmertz]

Code P on a 2023 Form 1099-R indicates an amount that must be reflected on your 2022 tax return.  Assuming that it includes no tax withholding, 2023 TurboTax will properly ignore the entry of this Form 1099-R other than to inform you that the income was required to be reflected on your 2022 tax return where the excess contribution should have been included on Form 1040 line 1h.

[Aminy]

Interesting - so Fidelity is flat out wrong, as they repeatedly said all that matters was when the disbursement came to me (2023 calendar).

[Aminy]

When I go to amend my 2022 return, the 1099-R "P" option is defined as "Contribution taxable in 2021".  I'm in a loop going back too far in time....  Do I NOT put the code P in my amended 2022 return?

[dmertz]

Misleadingly, the selection text assumes that the Form 1099-R is a 2022 Form 1099-R.  Not until later in the entry of the 2023 Form 1099-R into 2022 TurboTax does TurboTax ask you to indicate that it's a 2023 form on which code P means taxable on your 2022 tax return.

[Aminy]

You're right @dmertz - it's really a poor way for TT to handle this.

Since Fidelity sent me a check in 2023 calendar for the excess contribution is this  a "corrective distribution made after December 2022"?  Thanks!