2022 calendar year, I contributed to Roth ira, then during 2023 Jan1 - April 15th realized my income is over limit, so I took out my excess contribution using the NIA method during that time before the tax deadline.
Wealthfront did exactly what I predicted and sent me the JP code 1099R goes well with my return in 2024 and everything matches up, none of that 1175.02 affects my taxes.
However, the stupid M1 finance gave me a 1099R with code 8 on it in 2024.
2a blank,
2b not determined checked,
other boxes through 6 are blank,
code8.
1st year of roth 2018
I am trying to file this, but the program is forcing me to enter a value in 2a, but I can't since it is blank
The correct code for the return of an Roth IRA excess contribution made in 2022 returned in 2023 should be P and J. Reportable on your 2022 return.
You had no taxable earnings in box 2a since you had a loss, therefore you do not have a taxable event to report.
You do not need to amend your 2022 tax return since it seems you reported everything correctly when you filed the 2022 return.
You should contact the financial institution to see if they will correct the Form 1099-R.
"However, for the distribution of excess Roth IRA contributions, report the gross distribution in box 1 and only the earnings in box 2a. Enter Code J and Code 8 or P in box 7." (Instructions Form 1099-R)
The correct code for the return of an Roth IRA excess contribution made in 2022 returned in 2023 should be P and J. Reportable on your 2022 return.
You had no taxable earnings in box 2a since you had a loss, therefore you do not have a taxable event to report.
You do not need to amend your 2022 tax return since it seems you reported everything correctly when you filed the 2022 return.
You should contact the financial institution to see if they will correct the Form 1099-R.
"However, for the distribution of excess Roth IRA contributions, report the gross distribution in box 1 and only the earnings in box 2a. Enter Code J and Code 8 or P in box 7." (Instructions Form 1099-R)
Thank you @DanaB27 ,
glad to see some confirmation for my research.
Roth IRA excess contribution made in 2023 returned in 2023 would code J8 2023 1099R in 2024 Apr tax season for Tax year 2023.
Roth IRA excess contribution made in 2022 returned in 2023 would code JP.
Is that correct?