Thanks. I had previously read the IRS guide to distribution codes in Table 1, and found them to be clear as mud, specifically, the instruction to use code J if codes 8 or P are entered. Good to get confirmation from someone other than Vanguard that it's correct. (Unfortunately, I've encountered multiple confirmed errors from Vanguard in the past, which has led me to be a bit skeptical of their statements.)
Their system is not wrong. The 1099R Inst state that Roth distributions not eligible for codes T or Q should be coded J, so in this case the J code is unrelated to your age. I know this is challenging to understand, but VG reps are not trained to explain why the IRS coding is as stated. Their system is correct.
https://www.irs.gov/pub/irs-prior/i1099r--2025.pdf
The amount in Box 2a is taxable in 2024, the year in which you made the excess contribution. However, there is no longer a penalty on that Boc 2a income. You should not report this corrective return of excess on Form 8606, rather as an explanatory statement with your 2024 return. If you want to avoid the statement, simply reporting the income on line 4b of Form 1040 will probably be OK.
I've already filed my TY2024 return. FWIW, TurboTax reported the earnings on excess on Schedule 1 (additional income and adjustments), Part 1 (additional income), line z (other income) with the explanation of earnings on excess Roth TY2024 contribution withdrawn prior to tax return due date.
Thanks again for your input.
Statistics: Posted by Ret2018 — Wed Jan 21, 2026 11:00 am — Replies 2 — Views 160