Excess contributions to IRA - need to amend?

Forum|Forum|1 year ago
March 8, 2025
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I had been regularly contributing to my IRA via payroll in 2023, and when completing my 2023 taxes, realized my income level had increased to the point where I had contributed beyond the limit. I removed the excess funds in March 2024, and reported both the original amount, and the amount I removed on my 2023 taxes prior to submitting them.

Now, I have received a 1099 R with a tax year of 2024, and Turbo Tax is saying I 'may' need to file an amended return. If my 2023 taxes reflected the excess contribution distribution, do I need to amend? Do I need to enter the 1099 R on my 2024 taxes?

DanaB27

Generally, if you already reported the earnings on an 2023 excess IRA contribution on your 2023 return then you do not have to amend your return. And if you had no taxes withheld then you do not need to enter it on your 2024 return.

To clarify, what is the code in box 7? You stated this was a work retirement account (which isn't an IRA)? If this was about a work retirement account like a 401(k) then note the excess deferral is reported on your 2023 return (Form 1099-R code P) but the earnings would be reported in 2024 (Form 1099-R code 8).

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Stan208Author

Thanks for confirming! It is definitely an IRA - I mistyped earlier, the regular deposits were from my checking account, not direct deposit. They just happened on the same schedule, so I got a little mixed up.

Box 7 on my 1099 R is JP (early distribution from a Roth IRA, and earnings taxable in 2023).