Question

1099R Box 7

Forum|Forum|2 years ago
March 15, 2024
2 replies
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On my excess traditional IRA contribution withdrawal before tax due date, can I only have one code P in Box 7 of 1099R as I can't find an applicable second code as I am over 59 1/2 so code 1 will trigger additional tax on early withdrawal of which I should not be. Since it's a traditional IRA so B and J not works for me as well. Any advise or I can go with just one code?

Thanks.

M

mglauner

Was your excess deferral in 2022 or 2023? You code have Codes P and 8 if the excess deferral occurred in 2023, or Codes P and 1 if the excess deferral occurred in 2022. To create a 1099-R in your 2023 return for return of excess IRA contribution, please follow the steps below:

Login to your TurboTax Account
Click on the Search box on the top and type “1099-R”
Click on “Jump to 1099-R”
Answer "Yes" to "Did you get a 1099-R in 2023?"
Select "I'll type it in myself"
Box 1 enter total distribution (contribution plus earning)
Box 2 enter the earnings
Box 7 enter P and J (for Roth IRA) or 1 (for traditional IRA)
Click "Continue"
On the "Which year on Form 1099-R" screen say that this is a 2023 1099-R.

You will not have any additional tax or penalties; you're just reporting.

Here's more discussion on Removing Excess IRA Contributions.

T

tman19Author

@mglauner

Thanks. I have created the 1099-R and everything is good except when I input the P and 1 (mine is 2023 contribution), the additional tax on early withdrawal on IRA triggered an additional tax (on schedule 2) of 10% on the earnings I put in Box 2a. But when I removed the 1 and left with only one code P in Box 7, the additional tax/schedule 2 go away. Again I am over 59 1/2 and its for traditional IRA so code 1 should not be right for me as its for taxpayer under that age. Am I correct?

D

dmertz

Employee

Enter the Form 1099-R as received and, if TurboTax generates Form 5329 reporting a penalty on an early-distribution, on the page where you can claim exceptions to the early-distribution penalty enter the taxable amount in the box for Corrective distributions made on or after December 29, 2022.