Manual 1099-R for distribution of excess contribution to Roth IRA

[lmc7410]

I made excess contribution to Roth IRA for 2020 and the funds and earings were distributed in 2022.

Since I dont receive 1099-R until 2023, I cannot amend my tax return for 2020 until then?? 

I tried to create 1099-R manually to amend my tax return for 2020 but when I create one, I only have a choice of 2020 or 2021 for the year of the form but it should be 2022??

[Carl]

You have nothing to amend. A transaction of any type that occurred in 2022 is not and can not be reported on a tax return for any other tax year. You will not report the 2022 transaction until you file your 2022 tax return next year.

[dmertz]

Did you report the excess contribution on your 2020 tax return?  If not, you must file 2020 Form 5329 to report the excess contribution and pay the 6% excess contribution penalty for 2021.  Form 5329 can be filed stand-alone.  If the excess contribution was not reported on your 2021 tax return you must also amend your 2021 tax return if already filed.

The deadline for obtaining a return of contribution to be able to eliminate the excess on your 2020 tax return was October 15, 2021, so that is not what you did; there can be no code JP Form 1099-R.  A distribution in 2022 to correct a 2020 excess contribution was required to be a regular distribution, code J, T or Q only, reportable only your 2022 tax return.  Earnings were not required to have been distributed.

If you were eligible to make a Roth IRA contribution for 2021 and made that contribution, you might have obtained a return of some or all of that 2021 contribution before the due date of your 2021 tax return to be able to apply some or all of the 2020 excess contribution as part of your 2021 contribution.  That would have eliminated the 2021 penalty on that portion of the 2020 excess.

[lmc7410]

Ok, understood about the excess contribution for 2020.   I also made excess contribution for 2021 and it was distributed in May 2022.  I asked for extension for my 2021 tax return, so I haven’t filed yet.  How do I report the excess that was distributed?   

[dmertz]

Your can either file and amend later when you receive the code JP 2022 Form 1099-R that reports the distribution of the 2021 excess contribution or you can enter that form now as if you have already received it.  The gross amount of the distribution (the amount returned adjusted for investment gain or loss) will be in box 1 and and there was any investment gain, the gain will be in box 2a.