Turbo Tax: "Received a return of an IRA contribution before 4/15/2024. Explain the detail of the return". Not sure why I'm getting this or how to answer.

[impactbolt5]

So I got 2 1099-Rs for the 2023 tax year with different codes:

1. $5432.34 - taxable amount zero, IRA/SEP/SIMPLE not checked, Codes P, J 
2. $89.34 - taxable amount zero, IRA/SEP/SIMPLE not checked, Code 8, J

I understand that the 1099R with Codes P, J I will need to amend my 2022 return

The issue is the 1099R with Codes 8,J. From research, I will include this on my 2023 return. Code 8 is a "Return of contribution taxable in 2023"

After submitting this 1099R, TurboTax asks me "Received a return of an IRA contribution before 4/15/2024. Explain the detail of the return"

Honestly not sure why it's asking me this or how to answer it. These two 1099R are a result excess contributions to my Roth IRA for 2022 due to high income. They were also made on the same day, so I'm not sure why they have different codes.

Please help. Thank you!

[DanaB27]

It seems you made contributions for 2022 in 2022 and 2023

Generally financial institutions will follow this rule:

• If you made the excess Roth IRA contribution in 2023 for 2022 and then withdrew in 2023 then you will have code 8 and J on your 2023 Form 1099-R, and it will have to be reported on your 2023 tax return.
• If you made the excess Roth IRA contribution in 2022 for 2022 and then withdrew in 2023 then you will have code P and J on your 2023 Form 1099-R, and it will have to be reported on your 2022 tax return.

You can ignore the date on the screen and just enter the explanation that you removed the 2022 Roth IRA excess contribution before the due date.

Please be aware, you do not need to amend your 2022 tax return to add the 2023 Form 1099-R with codes P and J since you did not have any earnings reported in box 2a. All that TurboTax would do is add an explanation statement. 

[impactbolt5]

Thank you. So is the rule of thumb for 1099R with Code P and zero taxable amount in 2a NOT NECESSARY to amend? Just want to confirm since is the first time dealing with this scenario if you can't already tell   

[DanaB27]

Yes, this is correct since $0 in box 2a means you do not have any taxable income to report. Therefore, you do need to amend your 2022 return.