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Level 2
posted Mar 20, 2023 4:22:37 PM

How to include 2022 Roth excess contribution

I am 60+ years old and have a Roth account for over ten years.

I had an excess Roth contribution of $5,200 last year and would like to avoid the excess contribution penalty.  The Plan Admin. is going to process the distribution + earnings and give me a letter acknowledging the excess contribution and that I am going to receive 1099-R for 2023.  The questions:

1.  I am working on my taxes.  Is it possible to include this activity for tax filing?  If so, please explain.  If not, what should I do next?

2.  What do I do with the 1099-R for 2023?

Any help is greatly appreciated.

0 2 284
2 Replies
Expert Alumni
Mar 20, 2023 8:44:09 PM

You can report the income on your 2022 tax return by entering a substitute form 1099-R as follows:

 

  1. Choose the Federal option on your left menu bar
  2. Choose Wages & Income
  3. Choose the Retirement Plans and Social Security menu option 
  4. Choose IRA, 401(k), Pension Plan Withdrawals(1099-R)
  5. Choose the enter 1099-R option
  6. Choose Change how I enter my form
  7. Choose Type it in myself
  8. Choose Financial institution or other provider (1099-R)
  9. Enter in as much information as you can regarding the pension income 
  10. Work through that section until you see Do any of these situations apply to you?
  11. Choose I need to file a substitute 1099-R
  12. Complete the information requested

Enter in box 1 the distribution amount and in box 2(a) the taxable earnings. Enter code "P" and "J" in box 7.

 

You will receive a form 1099-R in 2024 for tax year 2023, just enter it in TurboTax and if it has the proper code of "P" in box 7, it won't show as taxable on your 2023 tax return.

 

 

 

Level 2
Mar 20, 2023 8:46:51 PM

Many thanks!