Excess Contribution Loss Roth IRA 2024 (TT showing taxes due on loss amount)

Forum|Forum|1 year ago
April 14, 2025
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Excess Contribution with Loss Roth IRA 2024 (TT showing taxes due on loss amount)

1.I over contributed in Roth IRA 2024. I withdrew the excess amount which had a loss in 2025 befor ethe filing deadline, so it was less than contributed amount. In the income section, I entered a dummy 1099-R with the amount withdrawn (contribution-loss) using J,P for year 2024 and zero taxable in 2a.

Is this the correct action for the above?

2.In the IRA contributions section, I enter the inital contribution and then the excess removed (contribution-loss) when asked. TT is showing tax due on the loss amount.

How am I supposed to enter the above since the loss is not taxable?

TT has defaulted to Deluxe edition (I am assuming) since I have 1099-DIV, 1099-R, 1099-INT with Standard Deduction

Thanks !!!

DanaB27

1. Yes, that is correct.

2. No, you need to enter the excess contribution amount withdrawn but ignore the loss. Therefore, you will enter $7,000 if you requested a return of $7,000 excess contribution but received $6,900 because of a loss.

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