Question

How do I report an excess contribution made to my Roth account in 2016 on my 2016 taxes? The excess and earnings were removed in Feb 2017.

Forum|Forum|7 years ago
June 4, 2019
1 reply
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I would rather include the earnings on my 2016 taxes than amend next year after I receive the 2017 1099-R in Jan 2018. Should I create 1099-R and include Code 8?

TurboTax Premier Windows

macuser_22

Employee

Yes, you can do that if you know the earnings (if any).

Enter the total amount of the returned contribution plus earnings in box 1, and the earnings in box 2a, code "J" in the top box 7 and "P" in the lower box 7 - NOT code 8. The "J" says that it is a Roth and the P says taxable in 2016 on a 2017 1099-R

The interview for a code "JP" will ask if this is a 2016 or 2017 1099-R - choose 2017. The 2017 code P means taxable in 2016 (not 2015) since this will be a 2017 1099-R that you will get - not a 2016 1099-R.

When the 1099-R comes next Jan. 2018, you can ignore it.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

D

d5marinoAuthor

I just entered the 1099-R as instructed and it worked perfectly. There are so many conflicting answers to this issue and I hope others will follow your instructions. Thank you so much!