Explain Excess Withdrawal

Forum|Forum|2 years ago
December 29, 2023
2 replies
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As Turbo walks me through a 2023 return, I'm getting a message that says "You told us you received a withdrawal of an excess traditional IRA contribution from 2022 or prior year. Explain here the details of the excess contribution and withdrawal."

First of all, I did not tell Turbo this. Second, my Traditional IRA is a rollover from my previous 401K plan which was done in 2015. Thirdly, I have not contributed any money at all to my IRA after it was converted.

Where is the software getting this information.

Best answer by dmertz

You mistakenly entered a zero in box 2a of TurboTax's Form 1099-R that has code 1, 2 or 7 in box 7 and the IRA/SEP/SIMPLE box marked. You must enter the Form 1099-R exactly as received. If the distribution is nontaxable, say, because you rolled over the distribution, you must still enter the same amount in box 2a as is in box 1 and properly answering TurboTax's follow-up questions will cause the distribution to be reported as nontaxable on Form 1040 line 4b.

Anonymous_

Employee

I will page @dmertz

dmertzAnswer

Employee

MJW5Author

Employee

It appears you hit the nail square on the head. I was creating an early "test" return and do not have the actual 2023 1099 yet. I manually entered the amounts of our RMD and when I went back to look, the form created by Turbo had $0 entered in box 2a. I deleted that entry and then went back through the walk-through process. The request for information concerning excess withdrawal I was getting did not reappear. THANK YOU VERY MUCH. You know Turbo Tax very well. I'll be sure to watch this closely when I prepare my actual 2023 return.