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Level 2
posted Apr 6, 2023 4:26:31 PM

Excess Roth IRA contribution withdrawn for loss - Box 2 and Box 7?

First, thank you for your advice on this matter. Your expertise and time are deeply appreciated. Second, I apologize if this question is redundant, but I just found this forum in April 2023. 

 

My scenario: I made an excess Roth IRA contribution of $105 in 2022. I realized this mistake and had Vanguard remove the excess contribution in March 2023 (before Tax Day). Vanguard calculated a loss and returned a distribution of $97 in March 2023. I have not yet received a 1099-R (which I understand I will receive in 2024.) I am <59.5 years old. 

 

My question: If I want to manually enter a 2023 "1099-R" for the 2022 excess contribution removal, should I enter $105 in Box 1, $0 in Box 2, and both P and J  in Box 7 (because I made the 2022 excess contribution and removed it in 2023 but before 4/18/23)? P and J still apply even if I successfully removed the excess contribution in 2023 but before 4/18/23? 

 

Lastly, then I should not also enter any information in the other TT sections (deductions) when they ask about excess Roth IRA contributions in 2022?

 

Thank you very much for your time and help!

1 1 425
1 Replies
Expert Alumni
Apr 8, 2023 5:04:34 AM

You will enter the amount distributed to you in box 1 ($97) and $0 in box 2a. Yes, codes P and J apply since you removed a contribution for 2022 in 2023.

 

To create a Form 1099-R in your 2022 return please follow the steps below:

  1. Login to your TurboTax Account 
  2. Click on the "Search" on the top right and type “1099-R” 
  3. Click on “Jump to 1099-R”
  4. Answer "Yes" to "Did you get a 1099-R in 2022?"
  5. Select "I'll type it in myself"
  6. Box 1 enter total distribution (contribution minus loss)
  7. Box 2a enter $0
  8. Box 7 enter J and P
  9. Click "Continue"
  10. On the "Which year on Form 1099-R" screen say that this is a 2023 Form 1099-R.
  11. Click "Continue" after all 1099-R are entered and answer all the questions.

 

If you removed the full Roth IRA contribution then you don’t have to enter the Roth contribution in the IRA contribution interview. Another option is to enter the Roth contribution in the IRA contribution interview and enter the full excess contribution amount removed (ignore the loss) on the penalty screen ($105). 

 

  1. Click on "Search" on the top right and type “IRA contributions”
  2. Click on “Jump to IRA contributions"
  3. Select “Roth IRA”
  4. Continue until the penalty screen and enter the excess contribution amount withdrawn.