Excess IRA Contribution Issue - Do I Need to Amend 2023 Tax Return?

[jnl2022]

I received a 1099-R from my IRA brokerage for 2024 as I contributed to my IRA last year. The contribution was made in 2024, but it was a catch-up contribution for 2023. What I didn't realize before making the contribution was that I was unable to contribute to my IRA as I didn't work for the entirety of 2023 and this would be considered an excess contribution. I called my brokerage to reverse the transaction and filed my 2023 return without reporting that I contributed to my IRA since I reversed it. When I entered the 1099-R into TurboTax for this year's return, a message appeared that I may need to amend my 2023 tax return. Since I did not report the IRA deduction for 2023, is this still necessary?

[ThomasM125]

Yes, you would need to report the distribution on your 2023 return as there may be income associated with it that would be taxable in that year. You will have to enter the 1099-R you received in 2024 in your 2023 amended return. Use code 8 in box 7. The taxable amount of the distribution would be listed in box 2.