ROE done in same year- a bit different circumstances than I have seen here

[Nano4]

Hi-

I contributed to an IRA for 2024 which turned out to be non-deductible. I realized my mistake right away. Because I have not yet filed my taxes, I did a return of excess and there was a loss (market down). A 1099-R for 2024 will be issued. I then made a correct, deductible SEP contribution for 2024. 

Question- is there a place within TurboTax for me to enter this ROE? I never deducted it in the first place, and am not keeping it as a non-deductible IRA. Thanks so much

[DanaB27]

Did you request the return of contribution plus earning with your financial institution? If yes, the you should get get a 2025 Form 1099-R in 2026 with code P and 1. This Form 1099-R will have to be included on your 2024 tax return and you have two options: 

• You can wait until you receive the 2025 Form 1099-R in 2026 and amend your 2024 return or
• You can report it now in your 2024 return and ignore the 1099-R when it comes unless there is Box 4 Federal Tax withholding and/or Box 14 State withholding. Then you must enter the 2025 Form 1099-R into the 2025 tax return since the withholding is reported in the year that the tax was withheld. The 2025 code P will not do anything to change the income in the 2025 tax return income but the withholding will be applied to 2025.

To create a Form 1099-R in your 2024 return please follow the steps below:

1. Login to your TurboTax Account 
2. Click on the "Search" on the top right and type “1099-R” 
3. Click on “Jump to 1099-R”
4. Answer "Yes" to "Did you get a 1099-R in 2024?"
5. Select "I'll type it in myself"
6. Box 1 enter total distribution (contribution minus loss)
7. Box 2 enter $0
8. Box 7 enter P and 1
9. Check the "IRA/ SEP/ SIMPLE" box
10. Click "Continue"
11. On the "Which year on Form 1099-R" screen say that this is a 2025 1099-R.

Since you had no earning this won't be taxable but TurboTax will add an explanation statement to your return.

[Nano4]

Dan, super helpful. Thank you SO much. 

The financial institution is sending the 1099-R I think in my mind I was getting a 2024 1099-R, but it will definitely have year 2025 on it?

In that case, if I create the 1099-R myself will it be for 2024? Also, it was a loss, not a gain. I know I cannot use the loss against my gains for 2024, correct? I transferred securities so the loss was only paper, the shares will grow back. Nano

[MinhT1]

No. 

The form 1099-R you created is for tax year 2025. And you must answer that it is for tax year 2025 when asked in TurboTax.