Excess Roth Contribution circular

Forum|Forum|3 months ago
March 23, 2026
1 reply
9 views

TT provided me with the amount of my excess Roth contribution for 2025. I can not changed that amount now.

I calculated the Income on the excess.

I told the Bank the gross amount to withdraw ASAP plus the additional income.

I put there additional income into TT and TT recalculates a new balance to withdraw.

It is a circular calculation. If I with draw the additional higher amount plus the income and place it into tT it will recalculate another amount.

How do we handle this is? I already made the first withdrawal plus income.

ThomasM125

Level 15

The distribution amount listed on your Form 1099-R should include the income and is reported in box 1 on your Form 1099-R entry. I believe you may have reported the principal distribution in box 1 and the income portion in box 2. For instance, if you over contributed $1,000 and withdrew that plus $10 in income, the entry in box 1 would be $1,010, with $10 going in box 2. So, if your income goes up $10, you withdrew the extra $10 so you should not be over your contribution limit.

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Retired BillAuthor

Level 2

The 1099R will not come until 2027.

The bank will put the Gross amount in Box 1 and the taxable in box 2.

I can create the same in Turbo tax but if I insert the amount (in your example $1000) in easy step it will generate another amount to remove.

In my case the original excess was $7,250 and the other income was $350 so the combined amount to go into box 1 is $7,600.

Retired BillAuthor

Level 2

Just to clarify, if I prepared the 1099 R like what will come in 2027 I would put 7,600 in box 1 and $350 in box 2.

When I go to easy step they ask how much of the excess I withdraw timely. I answer $7,250. So they come back and ask for another $180 withdrawal. The calculation is circular.

If I answer the question with $7,600 (excess + other income) it will work but I do not think that is correct to do it that way.