Withdrawing Excess Roth IRA Contribution

[gk5040]

Thank you for reminding me.  My husband got a 1099R from Vanguard so I assumed it would be the same and I entered that number.  Luckily, I havent efiled their taxes yet so I will have my daughter call and confirm!

[Darenl]

Hi @DanaB27 sorry for bugging you. I've googled and found this thread that is very similar to my situation and your answer seems to work for me exactly. 

However I have 2 quick follow ups and hope you can share your thoughts:

1. I made the contribution of 7K to Roth IRA in Feb 2025, for 2024 , and later requested return of excess in April 13 2025 before the tax deadline with $30 earning, so total of $7030. The only difference from OP is that my contribution is made in 2025 for 2024.  But I think the solution you suggested above still applies to me right? 

2. Do I expect form 8606 to generate? After I followed your solution, by entering form 8606 with code PJ, and select year 2025 for this 1099-R, I don't see 8606 generated. I thought a distribution from Roth IRA should trigger 8606? But is it because return of excess is not considered an actual distribution ?

Thank you!

[GM45]

Hello Dana:

I was the one that made an erroneous Roth contribution of $8000 in 2024. You and others helped me create a 1099-R on my 2024 return so I could show I was withdrawing the contribution plus earnings, using codes P and J.

In one response yo wrote: "You can report it now in your 2024 return and ignore the 1099-R ("meaning the 2026 1099-R I think") when it comes unless there is Box 4 Federal Tax withholding and/or Box 14 State withholding. "

I have now received that 1099-R in 2026.  Box 2a shows my earnings on the erroneous contribution as a Taxable Amount. But there are no values in Box 4 Federal Tax withholding and/or Box 14 State withholding. Plus I see that Box 7 has Distribution Codes PJ.

To confirm, you are saying I don't add this 2026 1099-R to the return I am filing now?

Thanks again, Gerry

[RogerD1]

@GM45 Yes, you would not enter the 2025 1099-R on your 2025 return for earnings you received on excess contributions on a Roth overcontribution made for 2024,  since these earnings were already reported as income in 2024.  You may want to go back and look at your 2024 return to make sure that the earnings reported on the 1099-R match up with what was reported on your 2024 return.  If so, you are then good to go!

[GM45]

Thanks Roger. I check and the numbers are the same.

[GM45]

Interesting to see in the 2025 1099-R I just received, it has the codes PJ in box 7 Distribution Codes. I assume this is how the IRS knows I paid the tax already last year? And of course these were the codes that I was told to enter on my 2024 Return.