2023 Excess Roth IRA Contribution Made in 2024

Forum|Forum|1 year ago
October 10, 2024
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Need help completing my 2023 taxes (I filed the extension and now they are due Oct 15) with the following scenario:

$2,537-excess contribution made on 2/9/2024 for tax year 2023 (year prior contribution to Roth IRA)

$67.78-earning from $2537 excess contribution made in 2024 for tax year 2023.

Removed both $2537 and $67.78 in 2024 before Oct 15 deadline from Roth IRA.

Questions-

1) Do I fill out form 5329 for 2023 tax year or 2024 tax year and how so? I believe I will only owe taxes on the $67.78 earnings but not the 10% early withdrawal penalty since I removed before the extended Oct 15 deadline for the 2023 taxes.

2) Do I fill out form 1099R only for 2024 tax year or do I need to report for 2024 tax year?

3) Is there anything else that needs to be reported for tax purposes?

I want to be able to avoid completing an amended tax return for 2023.

Thank you!

Anonymous_

No text available

fanfare

The allocable earning belong on your 2023 tax return.

If you don't want to have to amend, you should include that amount in your original 1040 filing Line 4b.

Nothing goes on your 2024 return, unless the custodian withheld income tax (yes it has happened to some people).

Search the forum for how to use 1099-R Code PJ to put that amount on your 2023 tax return.

There is no penalty so you don't need the form 5329.

@helpplease44

helpplease44Author

I read on turbotax before the following which is why I am confused:

"If you made the contribution to your Roth IRA in 2024 (between January 1, 2024 and the 2023 filing deadline without extensions) but you designated it as a 2023 contribution and you withdrew it in 2024, the Form 1099-R you get will be for 2024. Include the Form 1099-R on your 2024 return. Your Form 1099-R will have code 8 and a code J in box 7."