How to handle an overcontribution in 2024 that I recovered before filing in 2024? I received a 1099-R in 2025, but don't think I should enter it.

[user17739782998]

For tax year 2024 I overcontributed $8000 to my Roth IRA.  Before filing my return for tax year 2024 my advisor removed the contribution.  The contribution amount and about $1000 of earnings were returned to me.  Following advice from the TurboTax community, when I filed my return for 2024 I created my own 1099-R for 2025 to effectively negate having ever contributed to my Roth IRA in tax year 2024. 

My understanding was that when I received the actual 1099-R for 2025, I should not enter it because I already paid tax on the earnings when filing my return for 2024. 

In early 2026 I received the 1099-R for 2025.  It shows a gross distribution for the full $9000, and a taxable amount of the $1000 that was earnings.  I read somewhere that I have to enter the 1099-R for 2025 because it has been sent to the IRS.  But when I enter it, TurboTax tells me I will need to amend my return for 2024.  But the whole reason why I created the 1099-R for 2025 myself (before filing my 2024 return) was so I wouldn't have to amend my 2024 return.

Can I just leave the 1099-R off of my return for 2025?

[AnnetteB6]

Yes, as long as the Form 1099-R does not include any tax withholdings in box 4 or box 14, you can leave it off of your 2025 tax return.  If there are tax withholdings, then it should be entered so that those can be taken into account on your return.

[user17739782998]

Thanks for your reply.

I deleted the 1099-R from my 2025 return, but TurboTax is still showing it in Part IV of Form 5329.  How can I get TurboTax to recognize that I deleted it from my 2025 return?

[CatinaT1]

You will need to delete From 5329 as well as the 1099-R, and any associated worksheets.

If you are using:

• TurboTax Online: see How do I view and delete forms in TurboTax Online?
• TurboTax Desktop:
  1. On the top right, there is a FORMS button.
  2. Click on FORMS.
  3. Locate the form you want to delete.
  4. Click on the form or worksheet name.
  5. Below the form, bottom left, select DELETE FORM button.

Always use extreme caution when deleting information from your tax return.  There could be unintended consequences. 

[user17739782998]

I am hesitant to delete the form 5329 and associated worksheets because the worksheet shows an amount I received from an inherited IRA, and I don't know the downstream effects of deleting this information.  There must be a way to just make TurboTax recalculate the 5329 without my having to risk deleting something that might be needed.  That's the information I am seeking.  How can I make TurboTax recalculate the 5329?

[AnnetteB6]

Try going through the Deductions and Credits > Retirement and Investments > Traditional and Roth IRA Contributions section of your return.  

Look for a question in that section referring to the excess contribution where you can indicate that the excess was removed from the account.  This would recalculate the Form 5329 and remove it if it is no longer needed.

@user17739782998 

[user17739782998]

Thank you AnnetteB6!  That worked!  I really appreciate your help.