- In 2018, I accidentally made an excess contribution to my Roth IRA- In April 2019, before the tax filing deadline, but after I filed my 2018 taxes, I withdrew the excess contribution and earnings, to avoid a penalty. - So to my understanding, I also need to amend my 2018 tax return to report the earnings I made from my 2018 excess contributions. - However, because I withdrew the contribution/earnings in 2019, I received a 2019 1099-R form. So I need to amend my 2018 tax return with the information from my 2019 1099-R form. First of all, is that correct? If so, here's what I don't understand... I'm using the Turbotax Basic 2018 Desktop Mac app to amend my 2018 tax return to include the 2019 1099-R form. My 2019 1099-R form has the distribution code (box 7) "PJ" The Turbotax description for "J - Early distribution from a Roth IRA" seems correct.However, "P - Return of contribution taxable in 2017" does NOT seem correct for my case. I made the excess contribution in 2018, not 2017.There's another code in Turbotax's dropdown menu that says "8 - Return of contribution taxable in 2018" that seems correct for my case.I clicked "P" because that's what my 1099-R form stated. In the last step, TurboTax asked which year was my 1099-R form for, 2018 or 2019. I answered 2019.So my question is: Did my financial institution put the wrong distribution code on my 2019 1099-R form? ORIs the "P" distribution code accurate and is everything is okay/I can proceed with amending, because I told Turbotax that the form was titled 2019, not 2018?

Question

Amending Tax Return for Excess Roth IRA Contribution - 1099R Distribution code mismatch?

Forum|Forum|5 years ago
November 23, 2020
1 reply
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- In 2018, I accidentally made an excess contribution to my Roth IRA

- In April 2019, before the tax filing deadline, but after I filed my 2018 taxes, I withdrew the excess contribution and earnings, to avoid a penalty.

- So to my understanding, I also need to amend my 2018 tax return to report the earnings I made from my 2018 excess contributions.

- However, because I withdrew the contribution/earnings in 2019, I received a 2019 1099-R form. So I need to amend my 2018 tax return with the information from my 2019 1099-R form.

First of all, is that correct?

If so, here's what I don't understand...

I'm using the Turbotax Basic 2018 Desktop Mac app to amend my 2018 tax return to include the 2019 1099-R form.

My 2019 1099-R form has the distribution code (box 7) "PJ"

The Turbotax description for "J - Early distribution from a Roth IRA" seems correct.
However, "P - Return of contribution taxable in 2017" does NOT seem correct for my case. I made the excess contribution in 2018, not 2017.
There's another code in Turbotax's dropdown menu that says "8 - Return of contribution taxable in 2018" that seems correct for my case.
I clicked "P" because that's what my 1099-R form stated. In the last step, TurboTax asked which year was my 1099-R form for, 2018 or 2019. I answered 2019.

So my question is:

Did my financial institution put the wrong distribution code on my 2019 1099-R form? OR
Is the "P" distribution code accurate and is everything is okay/I can proceed with amending, because I told Turbotax that the form was titled 2019, not 2018?

macuser_22

Employee

Yes that is correct.

A code P advances by one year every year. When you enter a code P onto TurboTax 2018 it will ask if this is a 2018 1099-R or a 2019 1099-R. Say 2019 and the code P will advance one year to be taxable in 2018 and not 2017. That is the reason for the question.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**