Question

Excess IRA contribution reporting

Forum|Forum|3 years ago
March 31, 2023
1 reply
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I made an excess IRA contribution in January 2023 for tax year 2022 and through my broker had the excess contribution withdrawn in March 2023. Do I need to report this, and if so, how would I do that?

B

BillM223

Your IRA custodian will send you a 1099-R with distribution codes that will identify the distribution as the return of excess IRA contributions - when you enter this into your 2023 return, that is how you will report it. Anything on your 2022 return vis-a-vis the excess was handled automatically by TurboTax when you told TurboTax that you wanted the excess withdrawn.

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P

protohealerAuthor

I see. I don't expect to receive that form anytime soon so does that mean I'll have to file an amended return?

B

BillM223

No, no amended return for Tax Year 2022 needed.

TurboTax knows that that you are withdrawing the excess for 2022., so the contribution for 2022 will be automatically limited to the correct amount.

The return of the excess is not a taxable event, and your 2022 return will be correct. There is no penalty on the excess because you withdrew it in time.

The 1099-R will be entered on your 2023 return. That's not a taxable event, either, but you enter it so that the IRS won't wonder why you didn't report a 1099-R on your 2023 return.

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