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April 9, 2025
Question

Excess Traditional IRA Contribution

  • April 9, 2025
  • 1 reply
  • 0 views

I made a contribution to my traditional IRA in March of 2025 for tax year 2024.  Then when I did my taxes, I found that contribution was ineligible, so I had my IRA handler refund that (plus the small amount it made).  Knowing I will get a 1099-R for that for the 2025 tax year, my question is since that contribution was returned, do I still include that on 2024's tax return?

1 reply

April 9, 2025

No, you do not need to enter the IRA contribution in the IRA contribution interview if requested the return of excess contributions plus earnings. The earnings will be taxable in the year the contribution was made.

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April 9, 2025

Thank you!