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Roth IRA not eligible

tiagovf — Tue, 18 Feb 2025 21:54:40 GMT

I recently contributed $7,000 to my Roth IRA, only to later discover that I was not eligible to contribute to this account. Shortly after, I withdrew the same amount. I have since received a Form 1099-R from Fidelity for this transaction. I would like to know if this can be treated as a return of excess contribution rather than a distribution.

Do you think I need to start this process with Fidelity first: https://www.fidelity.com/retirement-ira/excess-ira-contributions

Re: Roth IRA not eligible

DaveF1006 — Tue, 18 Feb 2025 22:20:59 GMT

To clarify, what are the code(s) in Box 7? Also is there a difference between Box 1 and 2A listed on the 1099R?

Re: Roth IRA not eligible

tiagovf — Wed, 19 Feb 2025 04:55:52 GMT

Hi Dave, thanks for your response. The code is J and 2a is blank. However, I also called Fidelity today, and they mentioned they could fix it if I submit a form along with a letter explaining the mistake. Essentially, they said they need to recode it.

Re: Roth IRA not eligible

BrittanyS — Wed, 19 Feb 2025 13:21:30 GMT

Code J is considered an early distribution from a Roth IRA when no exemptions apply and the recipient is under 59 1/2. Box 2a is listed for the taxable income. If you had a return of excess contribution the code should be listed as "8," "B," "P," or "E.

Since you have already spoken to Fidelity and they are willing to correct the form, this would be the proper steps to take to fix the 1099-R. For more information, see the link below:

What is a 1099-R Form

@tiagovf

Re: Roth IRA not eligible

tiagovf — Wed, 19 Feb 2025 17:36:13 GMT

Thank you for the information @BrittanyS ! I appreciate it.