I contributed to a Traditional IRA and later learned I was ineligible. The bank said because I noticed in time there would be no tax hit, but 1099R shows distribution.

childmp — Mon, 09 Mar 2026 08:54:03 GMT

Re: I contributed to a Traditional IRA and later learned I was ineligible. The bank said because ...

DanaB27 — Mon, 07 Mar 2022 12:59:43 GMT

Yes, since you withdrew the excess contribution plus earnings you won’t have the 6% excess contribution penalty.

The withdrawn excess contribution will not be taxable, but the earnings (reported in box 2a) are taxable income and are subject to the 10% early withdrawal penalty if you are under 59 ½.

Distributions must be reported on your tax return even if it isn’t taxable. You can see the IRA distribution amount in line 4a of Form 1040 and the taxable amount on line 4b.

Login to your TurboTax Account
Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R”

To preview Form 1040:

Click on "Tax Tools" in the left menu
Click "Tools"
Click "View Tax Summary" in the Tool Center window
Click on "Preview my 1040" on the left

Re: I contributed to a Traditional IRA and later learned I was ineligible. The bank said because ...

childmp — Thu, 10 Mar 2022 17:01:46 GMT

Thanks very much. This answers my question.

topic I contributed to a Traditional IRA and later learned I was ineligible. The bank said because I noticed in time there would be no tax hit, but 1099R shows distribution. in Retirement tax questions

I contributed to a Traditional IRA and later learned I was ineligible. The bank said because I noticed in time there would be no tax hit, but 1099R shows distribution.

Re: I contributed to a Traditional IRA and later learned I was ineligible. The bank said because ...

Re: I contributed to a Traditional IRA and later learned I was ineligible. The bank said because ...