topic 1099-R; excess contributions and reporting it correctly in Get your taxes done using TurboTax

1099-R; excess contributions and reporting it correctly

protohealer — Wed, 11 Feb 2026 03:32:32 GMT

I entered my 1099-R info in the corresponding area under "Wages and Income." This was for a withdrawal of a $6000 excess contribution to my Roth Ira for year 2022. I am aware that even though I made the contribution on 1/3/23 and removed it on 3/24/23, I am hit with a 10% penalty as I am younger than 59 1/2 and that this withdrawal doesn't qualify for an exemption. Do I still need to report this amount in the "Retirement and Investment" area where it prompts you to enter "Excess Roth Ira Contributions for Prior Years" since it was for 2022? Or did inputting the 1099-R info make this step unnecessary?

Appreciate the help

Re: 1099-R; excess contributions and reporting it correctly

DanaB27 — Sat, 17 Feb 2024 16:06:40 GMT

No, you do not enter anything under "Excess Roth Ira Contributions for Prior Years" since you removed the excess and earnings by the due date of the 2022 return. Therefore, you did not have an excess contribution for 2022 and should not have the 6% excess contribution penalty on your 2022 return.

No, you should not have the 10% early withdrawal penalty since you withdrawal was after December 29th, 2022.

"Certain corrective distributions not subject to 10% early distribution tax. Beginning with distributions made on December 29, 2022, and after, the 10% additional tax on early distributions will not apply to a corrective IRA distribution, which consists of an excessive contribution (a contribution greater than the IRA contribution limit) and any earnings (the portion of the distribution subject to the 10% additional tax) allocable to the excessive contribution, as long as the corrective distribution is made on or before the due date (including extensions) of the income tax return." (Pub 590-B)

When you enter your Form 1099-R for the return of excess contribution plus earnings please pay attention to the following question to get exempt from the 10% penalty:

Click "Continue" after all 1099-R are entered and answer all the questions.
Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Corrective distributions made before the due date of the return".

Re: 1099-R; excess contributions and reporting it correctly

protohealer — Sun, 18 Feb 2024 17:27:59 GMT

Dana B27,

Thank you for answering my questions, correcting some of my assumptions, and also for the supplemental information regarding entering 1099-R info. That was very insightful and something I overlooked.

Re: 1099-R; excess contributions and reporting it correctly

fanfare — Sun, 18 Feb 2024 18:02:48 GMT

If allocable earnings were greater than zero, that is taxable income on your 2022 tax return.

As noted above the additional early withdrawal penalty has been eliminated going forward.

If you got back exactly $6,000 or less you don't have to worry about it.

@protohealer

Re: 1099-R; excess contributions and reporting it correctly

protohealer — Tue, 20 Feb 2024 20:20:38 GMT

@fanfare,

I had some gains, so how would I go on to report that on my 2022 tax return?

Re: 1099-R; excess contributions and reporting it correctly

DanaB27 — Wed, 21 Feb 2024 13:06:33 GMT

To confirm, what are the codes on your Form 1099-R box 7?

If your 2023 Form 1099-R has the codes P and J then you will enter it on your 2022 tax return. Please see How do I amend my federal tax return for a prior year?

"For purposes of determining excess contributions, any contribution that is withdrawn on or before the due date (including extensions) for filing your tax return for the year is treated as an amount not contributed. This treatment only applies if any earnings on the contributions are also withdrawn. The earnings are considered earned and received in the year the excess contribution was made." (Pub 590-A)

@protohealer

Re: 1099-R; excess contributions and reporting it correctly

protohealer — Fri, 23 Feb 2024 07:18:04 GMT

It says 8J.

Re: 1099-R; excess contributions and reporting it correctly

DanaB27 — Fri, 23 Feb 2024 08:29:27 GMT

A 2023 Form 1099-R with code 8J belongs on your 2023 tax return. You don't need to amend your 2022 tax return.

Re: 1099-R; excess contributions and reporting it correctly

protohealer — Sat, 24 Feb 2024 20:36:51 GMT

Okay. Thank you for clarifying that point for me.