Hi!
I contributed the maximum to my traditional IRA back in early 2023. I am in the middle of filing taxes for year 2023. I accidentally thought that I was ineligible to contribute to IRA, and that the way to rectify the overcontribution was to take a distribution of the amount plus gains, so I did that (in early 2024).
Now I want to re-contribute the max back to my IRA for 2023, and consider the whole thing a rollover, since it's within 60 days. This is what my IRA account provider (vanguard) suggested. But I can't put back the gains, and so I need to report them as income on my 2023 tax return. I did not receive a form 1099-R because the distribution (and re-contribution) happened in 2024.
First, does all of this make sense, and is the plan to re-contribute (rather than pay an early distribution penalty of 10%) a good one?
Second, how do I report the gains in turbotax? I don't have a 1099-R, and I don't see anywhere else to put that in.
Thank you so much!
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It would make good sense to make the IRA contribution to save taxes. To report the earnings on the premature contribution in 2023, you need to enter a substitute Form 1099-R in your 2023 tax return. You can do that as follows:
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