How to enter 1099-R for Over Contribution

Forum|Forum|2 years ago
March 1, 2024
1 reply
0 views

I have ready many articles on the community about this subject, but I am still unclear about the correct way to handle my 1099-R(s) that I received this year for excess contribution on my 2022 taxes.

I over contributed to a Roth 401K and Roth IRA in year 2022. In both cases, the excess contributions were removed in a timely fashion before the tax deadline in 2023 and neither funds had any gains to report. I did not have a 1099-R to enter when I did my 2022 taxes. Now, I have received the two 1099-R(s) - a 1099-R that has code PB for the correction of the Roth 401K and another 1099-R that has code PJ for the correction of the Roth IRA. (No other 1099-R received as both were a loss). Both show no taxable amount in box 2a and box 4.

Do I need to amend my 2022 taxes to report these 1099-R even though there is not taxable income and it shouldn't change my taxes as far as I know? Also, just to make sure... I don't have to do anything on my 2023 taxes this year with these 1099-R(s), correct?

Best answer by DanaB27

Yes, you do not have to enter anything on your 2023 tax return.

No, you do not need to amend your 2022 tax return to include the 2023 Form 1099-Rs received because they will not change your tax return. TurboTax would only add an explanation statement for the Form 1099-R with code PJ since you did not have any earnings (only earnings would be taxable). A Form 1099-R with code BP won't make any changes to your return since a excess deferral to a designated Roth account won't be added to the wages.

DanaB27Answer

Yes, you do not have to enter anything on your 2023 tax return.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

memrickAuthor

Thank you! I appreciate you taking the time to answer my question and give your input. This is exactly the information I was hoping to understand more clearly.