Excess Roth IRA 2024 & 2025

[ThomasM125]

Yes, that is correct though, as the actual Form 1099-R you get in 2025 will be coded that way. You will see a question in TurboTax after you complete the form that will ask you what year it belongs in, to which you say 2025.

[fallguy]

Yes thank you, I see that now and selected 2025. Turbo Tax also states that by selecting J in box 7 it is considered an early withdraw. Would this still apply if I am over 59-1/2 years and my ROTH has been longer than 5 years old?

[fallguy]

"Early distribution" to be exact, not an early withdraw

[ThomasM125]

Yes, it would be early since you withdrew the excess contribution within five years from when you made it. 

[fallguy]

This will hopefully be my last question regarding the 1099-R for Return of Excess IRA contributions. I believe I am on the last step, Turbo Tax is asking "Explain the Return of Contribution". It further states, "Explain here the details of the Contribution".  What kind of details is the IRS looking for other than, I did not qualify for a ROTH contribution this year because my household income was over the limit. ?

[ThomasM125]

That is fine,  or simply that you made an excess contribution in error.