Withdrew excess Roth contributions and earnings before I filed taxes

[KarinaM]

I contributed $600 to my Roth IRA in 2022. In Jan 2023, I was doing my 2022 taxes, and TT pointed out that I had excess contributions (couldn't contribute to a Roth at all). I worked with my bank to withdraw those contributions, including any earnings. Turns out I actually had a $10.61 loss on the excess contributions, so they withdrew $589.39. All actions have now been completed, though they don't expect to be able to provide an updated 5498 or a 1099-R until after 15 April. 

Since all excess contributions (and earnings) have been withdrawn before the 2022 filing date, and the net result is $0 contributed and there's no income from the excess contributions amount, do I have to report any of it on my 2022 taxes? If so, what exactly do I have to report on my 2022 taxes? What about on my 2023 taxes? 

[MinhT1]

If you withdrew your 2022 excess contribution to your Roth IRA before the due date of the 2022 tax return (April 18, 2023), make sure that you also withdraw the related earnings (in your case a loss).

On your 2022 tax return, you do not report the excess contribution as it has been withdrawn. The loss on your Roth IRA is no longer deductible.

When you receive the 2023 form 1099-R (in 2024) for this withdrawal, there is no further action needed.

[KarinaM]

Thanks for confirming I don't have to report the excess contribution, and that I'll be able to ignore the associated 1099-R in 2024.

The only form I've received from them so far is the 5498 (contribution summary). On what form are Roth earnings (or losses) reported?

Does this mean I should soon be receiving that form, showing my original 2022 earnings on the Roth were, say, $100, so I'd enter 2022 earnings of $100+$10.61. And I should also receive a corrected version sometime thereafter (possibly after the 15 April date), reflecting the corrected earnings of $110.61?

[ErnieS0]

You will not receive a 1099-R this year because you withdrew your contribution in 2023.

You can contribute to a 2022 Roth up to the due date of the return but any withdrawals and distributions are recorded in the calendar year (2023) so they will be part of a 2023 1099-R.

Report the amount shown on the form on next year’s tax return.

[KarinaM]

Understand that I won't receive a 1099-R in 2023.

But what form will I receive in 2023 that will list the income (or losses) incurred in 2022 by the Roth IRA?

[ShirlynW]

Keep in mind that the earnings are included in your taxable income for the year the excess contribution was made, so you’ll still receive a 1099-R to report these earnings on your tax return.

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