I made a Roth IRA contribution in 2023 of $6500 and didn't realize my error until TurboTax flagged it as excess due to not having earned income. I did a return of excess (in 2024) with my brokerage, and it was determined that my withdrawal distribution would be $4352.59 as I had $2147.41in losses. I have not yet filed my taxes for 2023 and am wondering how to input this information so I won't have to pay taxes on the difference as TT has me put $6500 in as a contribution and my brokerage says my 1099R will show a distribution of $4352.59 with a separate letter showing the losses that I won't get until next year. Right now TT is wanting me to pay $129 of tax because I took out less than I contributed but exactly the amount the brokerage said I needed to. I'm confused on how to do his properly, can someone help?
You'll need to sign in or create an account to connect with an expert.
You are going to enter a substitute Form 1099-R in TurboTax to report the return of contributions. You can enter the amount you contributed of $6,500 in box 1 on that form. Since it is more than the amount the broker will report the IRS won't be concerned about it, they would only be concerned if the amount was less.
To enter a refund of excess IRA contributions in the current year follow these steps:
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
PAccisano
Level 1
dperrett1
New Member
jl_brooks
Level 2
tocguy
Level 3
sunshineInTheRain
Level 3
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.