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March 15, 2025
Question

I contributed to ROTH IRA for 2024 tax yr in Jan 25. But, I'm not eligible for ROTH IRA. I withdrew money and close accnt. Gain I had was $7. no 1099R form. What to do?

  • March 15, 2025
  • 1 reply
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Amount deposited to ROTH IRA ~315. Withdrawn amount ~323. Bought a share and sold it where it had $7 gain. Broker company says 1099-R will be available next year only. What should I do?

    1 reply

    March 15, 2025

    The earnings are taxable in the year the contribution was made. You can check with your financial institution but since you made the contribution in 2025 for 2024 they most likely will issue you a 2025 Form 1099-R with code 8 and J in 2026. This will be entered next year on your 2025 return. 

     

    If you entered a Roth IRA contribution on your 2024 return then please make sure you enter that you withdrew the excess contribution in the IRA contribution interview:

     

    1. Click on "Search" on the top right and type “IRA contributions”
    2. Click on “Jump to IRA contributions"
    3. Select “Roth IRA
    4. Enter the Roth IRA contribution
    5. Continue until the penalty screen and enter the excess contribution amount withdrawn.

     

     

    Note, if the financial institution issues you a 2025 Form 1099-R with code P and J instead then you will have to include it on your 2024 return. 

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