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March 13, 2024
Question

I have excess contributions in my Roth IRA for the year 2023. I am in the process of removing them to avoid the penalty. I do not see an option on TurboTax to explain.

  • March 13, 2024
  • 1 reply
  • 0 views
I only see the prompt of recharacterizing the contribution as a Traditional IRA.

1 reply

March 13, 2024

You need to report the ROTH IRA distribution on your 2023 return so you can report the earnings in 2023 to avoid having to amend your return later on.

 

To enter a refund of excess IRA contributions in the current year follow these steps:

 

  1. Go to the personal income section of TurboTax 
  2. Find the Retirement Plans and Social Security menu option
  3. Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
  4. Choose Add Another 1099-R
  5. Choose I'll type it in myself
  6. On the screen that says Tell Us Which 1099-R You Have choose I need to prepare a Substitute 1099-R
  7. Enter the distribution amount in box 1 of the substitute 1099-R
  8. Enter the earnings in box 2(a)
  9. Enter code "P" and "J" in box 7
  10. When asked about the year on the form 1099-R, say it is for the year following the year you are working on

 

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