Explain Excess Withdrawal

[MJW5]

As Turbo walks me through a 2023 return, I'm getting a message that says "You told us you received a withdrawal of an excess traditional IRA contribution from 2022 or prior year.  Explain here the details of the excess contribution and withdrawal."

First of all, I did not tell Turbo this.  Second, my Traditional IRA is a rollover from my previous 401K plan which was done in 2015. Thirdly, I have not contributed any money at all to my IRA after it was converted.

Where is the software getting this information. 

[Anonymous_]

I will page @dmertz 

[dmertz · Accepted solution]

You mistakenly entered a zero in box 2a of TurboTax's Form 1099-R that has code 1, 2 or 7 in box 7 and the IRA/SEP/SIMPLE box marked.  You must enter the Form 1099-R exactly as received.  If the distribution is nontaxable, say, because you rolled over the distribution, you must still enter the same amount in box 2a as is in box 1 and properly answering TurboTax's follow-up questions will cause the distribution to be reported as nontaxable on Form 1040 line 4b.

[MJW5 · Accepted solution]

It appears you hit the nail square on the head.  I was creating an early "test" return and do not have the actual 2023 1099 yet. I manually entered the amounts of our RMD and when I went back to look, the form created by Turbo had $0 entered in box 2a. I deleted that entry and then went back through the walk-through process.  The request for information concerning excess withdrawal I was getting did not reappear.   THANK YOU VERY MUCH. You know Turbo Tax very well.  I'll be sure to watch this closely when I prepare my actual 2023 return.

[wjschermer]

I am receiving the same message. I checked and double-checked and the amounts entered for box 1 and 2a are identical and the "taxable amount not determined" is checked, and the other information is filled out exactly as it appears on the form. I even deleted the 1099-R and started over, same message. Any suggestions? I am afraid to just delete the information form...

[dmertz]

wjschermer, perhaps you have more than one Form 1099-R entered and are checking the wrong 1099-R.  The "Explain Excess Withdrawal" message only occurs in response to a 1099-R entry that is as I described in my original reply.  It does not occur in response to the presence of a Form 1099-R that has a nonzero amount in box 2a.

[wjschermer]

Thank you! That was the answer. I deleted the listing for two other forms that I have not received yet leaving just the one I filled out and the request for information disappeared. Thanks for your help!

[symaamgf]

The solution proposed is still not working for me.  I made back door roth conversions for both my wife and I in 2023, both within IRS guidelines.  The 1099-Rs both state the taxable amount is the same as the gross distribution but yet the taxable amount was not determined, i.e. box 2b was checked.  If I enter the amounts as recorded on the 1099-Rs, turbo tax treats these as taxable events but yet I never took a deduction for the original traditional IRA that was funded. 

[dmertz · Accepted solution]

You must enter the Forms 1099-R exactly as received.  After doing so you must click the Continue button on the page that lists the Forms 1099-R and enter additional information used on Form 8606 where the calculation of the taxable and nontaxable amounts of your Roth conversion is required to be done.

@symaamgf