3683903
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

srtadi
Returning Member

How to report removal of excess Roth IRA contribution?

I contributed $7500 towards my 2024 Roth IRA in Feb 2024 expecting that I would have the income to be eligible for it. At the end of the year (first week of Jan 2025) after I realized that I would not be eligible for it I had Schwab (where my Roth IRA account is held) remove the entire $7500 and the gains I had upto then as excess contributions. However, I still received the Form 5948 from Schwab in May 2025 showing that I had contributed $7500 towards Roth for 2024. I am yet to file my 2024 returns as I have filed for an extension.

 

My questions is - How do handle this on my 2024 tax returns ? Should I simply report $0 as my Roth IRA contribution since the excess was removed within the allowed period ? Or is there a form in TT to report the inital $7500 contribution and then the removal of it as an excess contribution ?

 

I am aware that I will recieve a 1099-R in 2026 for the gains/interest earned and that I will need to amend my 2024 returns at that time.

 

Thanks

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply

How to report removal of excess Roth IRA contribution?

If you know what the gains are, you can enter them now instead of amending later.  Create a substitute 1099-R with the total amount of the withdrawal in box 1, the taxable amount (attributable income) in box 2a, and use codes P and J in box 7.

 

Typically, most people would enter the Roth contribution, then be told by Turbotax that it is not eligible, and be recommended to remove it.  However, the result of doing that is that nothing is reported on the tax return, so you don't have to follow those steps if you don't want to.  Just leave the Roth off the return, and report the 1099-R now or later.  (Roth contributions are not reported unless they are un-removed excess.  There is nothing reported on the tax return that you made a Roth contribution if you later removed it within the deadline.)

 

The 5498 doesn't change because that's what happened in 2024.  If the IRS actually tries to reconcile the records (and there is some evidence that they don't bother even though they make it seem like they do) then the 5498 will be offset by the 1099-R with codes P and J. 

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question