Substitute 1099-R or wait until next year and amend?

Forum|Forum|2 years ago
March 29, 2024
1 reply
0 views

Hi!

I started working on my taxes a few weeks ago and realized I made an excess contribution for my Roth IRA. I contacted the broker, and they removed the contribution and the gains but they won't send the 1099-R until next year.

Should I wait until then and file a 2023 amendment? Or should I do a substitute 1099-R with these numbers? Any benefit to one way or another?

Thank you!

Best answer by DaveF1006

I would suggest reporting the withdrawal of the excess contribution on your 2023 return in the following manner.

Open (continue) return if you don't already have it open.
Inside TurboTax, search for 1099-R and select the Jump to link in the search results.
Answer Yes on the Your 1099-R screen,
Click on the box that you are creating a substitute 1099-R
Then select Continue.
In order to create a substitute 1099-R, you will need to obtain and name, address, and payer TIN as required so you can record the information properly on the form.

The codes you will need for box 7 are J and P. Since this is a Roth IRA the only amount that is taxable are any earnings on the excess contribution.

You will receive a 1099-R for the withdrawal in 2024 you do not need to report the information since you have reported it on your 2023 tax return.

DaveF1006Answer

I would suggest reporting the withdrawal of the excess contribution on your 2023 return in the following manner.

Open (continue) return if you don't already have it open.
Inside TurboTax, search for 1099-R and select the Jump to link in the search results.
Answer Yes on the Your 1099-R screen,
Click on the box that you are creating a substitute 1099-R
Then select Continue.
In order to create a substitute 1099-R, you will need to obtain and name, address, and payer TIN as required so you can record the information properly on the form.