Roth IRA excess contribution for a minor

[Ploank]

I mistakenly deposited money into my daughter's Roth IRA account (minor, no income this year, dependent on our 2024 taxes).  When I realized it, I requested return of excess contributions and any associated earning.  My deposit of $1000 was made in December 2024 and I received excess contribution check for $919.2 (as there was $80.8 loss) in February 2025.  Since I was not planning on filing 2024 taxes for my daughter (no income), I called the IRS help line to inquire if I should complete the 5329 form (and if should be this year or next year, since I will not get the 1099-R until next year).   I was told that I do not need to file 5329 since there is no earning.  Does that sound correct?  What will happen next year when we get 1099-R for my daughter - anything I need to do then?

[DanaB27]

Yes, only the earnings would be taxable on the 2024 return. Since your daughter had to earnings you do not need to file Form 5329 or anything else. You can ignore the 2025 Form 1099-R with code PJ.

[Ploank]

Thank you!