1099R Taxable amount not determined

Forum|Forum|4 years ago
April 12, 2022
2 replies
5 views

We have a 2021 1099R from a Roth IRA for a distribution that was the removal of excess Roth contributions in 2019. The total distribution was ~10k (7k excess contribution plus it's earnings)

Box 2a is blank, and taxable amount undetermined is checked. How do we handle this in Turbotax?

We have amended 2019 return to pay 6% penalty on the 7k excess, but how do we report the 1099? In 2019?

I believe only the earnings (~3k) are taxable as normal gains plus 10% penalty for early withdrawal?

Just don't seem to get there in Turbotax.

Thanx for any help

Best answer by DanaB27

Yes, you will have to pay the 6% penalty for 2019 and 2020 since you didn't withdraw the excess contribution by December 31, 2020.

Since you withdrew the excess contribution after the 2019 due date it will be treated as a regular distribution (you didn't need to withdrawn the earnings). You Form 1099-R should have code J in box 7. Please make sure that you enter your net contributions in the follow-up questions:

Click on "Search" on the top and type “1099-R”
Click on “Jump to 1099-R” and enter all your 1099-Rs
Click "Continue" on the "Review your 1099-R info" screen
Answer all the questions and make sure you enter the net contributions prior to 2021 on the "Enter Prior Year Roth IRA Contributions" screen (the net contribution will include any excess contribution not removed by the due date, in your case the $7,000 excess from 2019).
Answer the remaining question.

No, you will not have a taxable income unless you withdrew more than your prior net contributions. If you did then your earnings will be taxable and subject to the 10% early withdrawal penalty if you are under 50 1/2.

DanaB27Answer

Level 15

Yes, you will have to pay the 6% penalty for 2019 and 2020 since you didn't withdraw the excess contribution by December 31, 2020.

Click on "Search" on the top and type “1099-R”
Click on “Jump to 1099-R” and enter all your 1099-Rs
Click "Continue" on the "Review your 1099-R info" screen
Answer all the questions and make sure you enter the net contributions prior to 2021 on the "Enter Prior Year Roth IRA Contributions" screen (the net contribution will include any excess contribution not removed by the due date, in your case the $7,000 excess from 2019).
Answer the remaining question.

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HarleyandJenAuthor

Level 2

OK, since this was a 2019 excess contribution, is that 1099R and all the prior contributions and info done in our 2019 amended return?

taxman17

Level 2

In the 2019 return the 6% penalty for the excess contribution should be reported on the IRS 5329 form.

The distribution that you received to correct the excess should be reported on the 2012 taxes. To determine the taxability of the distribution refer to "A Comprehensive Guide to Tax Treatments of Roth IRA Distributions" found on the internet.