I unknowingly contributed to Roth IRA in 2023 for 2023 without knowing that I no longer qualify to contribute due to income limit. I filed the extension. Now I have done a timely corrective withdrawal of the excess contribution. I would like to know how to do it properly in turbo tax to file this correctly.
1. I am over 59 1/2. I assume I do not need to enter code for early distribution though it is a corrective withdrawal?
2. For mine, the distribution is done in 2024, but earnings were to be taxed in 2023. But my husband's contribution was done in 2024 for 2023 and the corrective withdraw happened in 2024. Do I only enter 1099R for mine or should I also enter his?
3. I have earnings reported by the financial institute, the earnings should be reported in 2023 tax which I have yet filed (extension filed). I also did have federal tax withholding, but no state. (do I enter 1099 R in 2023 tax as well as in 2024 later on?)
4. No way of knowing whether the earnings were all capital gains or interest. The 1099R will not be available until 2025.
5. I would like to report this in 2023 tax so I do not need an amendment later.
6. Do I need to consider to use a regular 1099R or a substitute 1099R since we don't have the form yet?
7. I read discussions about code 8 vs P. Confused why some people say to use P in my scenario since the code says it is for year 2022. Is it because this 1099 R is going to be done for 2024, but we are reporting it in 2023 and interpret P as for previous year?
I need some step by step help to resolve this mess we created accidentally.
