Roth IRA not eligible

Forum|Forum|1 year ago
February 18, 2025
1 reply
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I recently contributed $7,000 to my Roth IRA, only to later discover that I was not eligible to contribute to this account. Shortly after, I withdrew the same amount. I have since received a Form 1099-R from Fidelity for this transaction. I would like to know if this can be treated as a return of excess contribution rather than a distribution.

Do you think I need to start this process with Fidelity first: https://www.fidelity.com/retirement-ira/excess-ira-contributions

Ask the Experts - USAA - Feb 2025

DaveF1006

Level 15

To clarify, what are the code(s) in Box 7? Also is there a difference between Box 1 and 2A listed on the 1099R?

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tiagovfAuthor

Level 2

Hi Dave, thanks for your response. The code is J and 2a is blank. However, I also called Fidelity today, and they mentioned they could fix it if I submit a form along with a letter explaining the mistake. Essentially, they said they need to recode it.

BrittanyS

Level 12

Code J is considered an early distribution from a Roth IRA when no exemptions apply and the recipient is under 59 1/2. Box 2a is listed for the taxable income. If you had a return of excess contribution the code should be listed as "8," "B," "P," or "E.

Since you have already spoken to Fidelity and they are willing to correct the form, this would be the proper steps to take to fix the 1099-R. For more information, see the link below: