Thanks that thread has tons of good info! So it sounds like creating a 1099 is pretty easy (and will allow me to finish this all up now with no amendments)... I extracted the steps from that thread, can anyone confirm this is accurate?...Here's a guide on the TurboTax forum: https://ttlc.intuit.com/community/retir ... 00/3262070
That sounds like what I need to do, EXCEPT for the part where he says - "use codes P and J since you made the Roth IRA contributions in 2023". I actually made the contribution in 2024, not 2023, so do I need to use different codes?You will use codes P and J since you made the Roth IRA contributions in 2023 and withdrew them in 2024.
Only A5 should be checked.
Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2022" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2023.
You will get a 2024 Form 1099-R in 2025 with codes P and J for the withdrawal of the 2023 excess contributions and earnings. This 1099-R will have to be included on your 2023 tax return and you have two options:
You can wait until you receive the 2024 Form 1099-R in 2025 and amend your 2023 return or
You can report it now in your 2023 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 2024 Form 1099-R into the 2024 tax return since the withholdings are reported in the year that the tax was withheld. The 2024 code P will not do anything to the 2024 tax return income but the withholdings will be applied to 2024.
To create a Form 1099-R in your 2023 return please follow the steps below:
Login to your TurboTax Account
Click on the "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R”
Answer "Yes" to "Did you get a 1099-R in 2023?"
Select "I'll type it in myself"
Box 1 enter total distribution (contribution plus earning)
Box 2a enter the earnings
Box 7 enter J and P
Click "Continue"
On the "Which year on Form 1099-R" screen say that this is a 2024 Form 1099-R.
Click "Continue" after all 1099-R are entered and answer all the questions.
Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Corrective distributions made before the due date of the return".
*Just found this in that thread, from DanaB27 "Tax Expert"...
...I'm the second one (contributed in 2024), so sounds like I need code 8 J, but that should be reported on my 2024 tax return (according to Dana). In THAT case, I should just file my 2023 taxes as if nothing happened, and wait to report this on my 2024 taxes?If you made the excess Roth IRA contribution in 2023 for 2023 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 2024 for 2023 and then withdrew in 2024 then you will have code 8 and J on your 2024 Form 1099-R, and it will have to be reported on your 2024 tax return (I recommend checking with your financial institution if they follow this).
If you made the excess Roth IRA contribution in 2023 for 2023 and then withdrew in 2024 then you will have code P and J on your 2024 Form 1099-R, and it will have to be reported on your 2023 tax return.
Statistics: Posted by boggleheadun — Sat Apr 06, 2024 12:20 am — Replies 26 — Views 1549