I received a 1099R with a distribution code:P Excess Contribution even when I reversed my IRA contribution last year 05/04/2015. What do I do during this year filing?

Forum|Forum|7 years ago
June 1, 2019
2 replies
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On 03/16/2015 I have contributed $5000 to my existing IRA account later while filing my actual taxes in my 1040 form I didn’t mention that I was contributing to IRA and I immediately requested my banker to revert my $5000 contributions. I did see that my contribution has been reverted from IRA account on 05/04/2015. But in the end of last year I received 1099-R with distribution code: P (Excess Contribution/Earnings), what should I do now?

A. If I report this 1099-R document during my current year tax filings, it will indicate that I have done excess contribution last year which I did not.

B. If I neglect/disregard this specific 1099-R during my current year tax filings it will raise triggers to IRS that I avoided reporting all my earnings. Please clarify on how should I handle this situation.

TurboTax Deluxe Online

fanfare

Employee

P is for Prior as in prior year.

It does not go on your 2015 tax return.

fanfare

Employee

does your 1099 code P show a small taxable amount in Box 2a? if so, and it has not already been reported, amend your 2014 tax return to include this income.

K

kparekh

Hello,

I am asking a related question on receiving 1099-R since it seems the users here are knowledgeable about this.

I made $5500 contribution to my IRA account in year 2018. I am US citizen living outside the country and I have no W-2 income in USA. While preparing my 2018 Taxes I got a message from Turbotax that I am not allowed to contribute to IRA account and I should revert the transaction.

I called my IRA company immediately and reverted the transaction and got the money out of my IRA account.

I have received a 2019 Form 1099-R with Box1= 6044.04 and Box 2a = 544.04 and Box 7(Distribution Code) = P1, IRA/SEP/SIMPLE is marked 'X'

While I was preparing the 2019 Taxes with TurboTax I got a message that I will need to amend my 2018 tax returns. Since I have filed my taxes for 2019 I cannot get back to reviewing it or re-checking the message or any instructions that Turbotax may have given.

Please guide me what do I have to do. I will truly appreciate your guidance here.

Thanks,

KParekh.

D

dmertz

Employee

TurboTax is reminding you that the taxable amount was reportable on your 2018 tax return. If the $544.04 of taxable earnings was not already included on your 2018 tax return (2018 Form 1040 line 4b and the early-distribution penalty on Schedule 4 line 59), you must amend your 2018 tax return and add this Form 1099-R, making sure to indicate in the follow-up questions that it is a 2019 Form 1099-R. If these amounts were already included, there is no need to amend.