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Excess SEP IRA & Excess Roth IRA contribution

Forum|Forum|3 years ago
March 30, 2023
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I have $6000 excess contribution to Roth IRA in 2022 that was returned to me with $250 of investment gain before the filing deadline.

I also have $2300 excess contribution to SEP IRA in 2022 that was was also returned to me with $50 investment loss before the filing deadline.

How do I report these using turbo tax (screen by screen instruction) in my 2022 tax return that I'm preparing now. I was informed by my brokerage firm that I will not receive the 1099-R for these distribution until Jan 2024 .

Best answer by DaveF1006

You have two choices on how to report these. Choice 1:

Prepare two 1099R's for both for 2022. To create a Form 1099-R in your 2022 return please follow the steps below. Let address the first one with the earnings.
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 2022?"
Select "I'll type it in myself"
Box 1 enter total distribution (contribution plus earning) the earning are taxable.
Box 2a enter the earnings
Box 7 enter code P and J from the drop-down
Click "Continue"
On the "Which year on Form 1099-R" screen say that this is a 2023 1099-R.
Click "Continue" after all 1099-R are entered and answer all the questions.

Now repeat the same steps reporting the return of contribution for the SEP. This time, leave Box 2A blank and enter P and 1 for Box 7.

Choice 2 is to wait until you receive the 1099R's for next year and report on your 2024 return. If you decide to use the first choice, you will not need to report the 1099's you receive next year.

DaveF1006Answer

You have two choices on how to report these. Choice 1:

Prepare two 1099R's for both for 2022. To create a Form 1099-R in your 2022 return please follow the steps below. Let address the first one with the earnings.
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 2022?"
Select "I'll type it in myself"
Box 1 enter total distribution (contribution plus earning) the earning are taxable.
Box 2a enter the earnings
Box 7 enter code P and J from the drop-down
Click "Continue"
On the "Which year on Form 1099-R" screen say that this is a 2023 1099-R.
Click "Continue" after all 1099-R are entered and answer all the questions.

Now repeat the same steps reporting the return of contribution for the SEP. This time, leave Box 2A blank and enter P and 1 for Box 7.

Choice 2 is to wait until you receive the 1099R's for next year and report on your 2024 return. If you decide to use the first choice, you will not need to report the 1099's you receive next year.

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T

taikAuthor

Thank you. Is there any way to report the loss on the Excess SEP IRA distribution?

DaveF1006

Unfortunately not. in accordance with this IRS statute, you cannot receive a capital gains loss on your retirement accounts that already are receiving favorable tax treatment.

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