Return of excess IRA contributions - Back door

[curiousG1]

Hi. In 2024, I contributed 7000 to Roth IRA. But in January 2025, I realized the income exceeded the threshold. So here is what I did.

1. Return of excess ($7,000) IRA contributions : from Roth IRA to brokerage account (calculated amount: $6500 due to $500 loss)

2. Transfer of $7000 (not $6500) from brokerage account to Traditional IRA

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The two steps above was done in early April, and what do I report on my tax return (Y2024)? It may look like, I contributed $7000 to Roth IRA, and another $7000 to Traditional IRA. (however, the same $7000 traveled from Roth IRA to Brokerage account, and from brokerage account to Traditional IRA)

I've read many articles, but still do not know what to do. 

It would be greatly appreciated if you could advise on what forms I need to file. Thank you.

[DanaB27]

You will only enter the Traditional IRA contribution in the IRA contribution interview under Deductions & Credits. 

1. Click on "Search" on the top right and type “IRA contributions” 
2. Click on “Jump to IRA contributions"
3. Select “traditional IRA”

If you made an excess contribution in 2024 and withdrew the 2024 excess Roth IRA contribution plus earnings in 2025 before the due date, then you will get a 2025 Form 1099-R in 2026 with codes P and J. This 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 withholdings are reported in the year that the tax was withheld. The 2025 code P will not add anything to your income in the 2025 tax return but the withholdings will be applied to 2025.

To enter a 2025 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 2a enter $0
8. Box 7 enter J and P
9. Click "Continue"
10. On "Is the IRA/SEP/SIMPLE box on this 1099-R checked?" screen answer "No, the box is blank"?
11. On the "Which year on Form 1099-R" screen say that this is a 2025 Form 1099-R.