Messed up backdoor IRA: Reporting excess Roth IRA contribution properly

kr_008

Situation:

• Have done “clean” backdoor IRAs for a number of years. Really butchered it this year and learned my lesson to just do the backdoor if unsure about income.
• January 2024: Contribute $6.5K into Roth IRA for tax year 2023 
• February 2024: Realize MAGI is above the roth limit for 2023, withdrawal contribution + gains. I then contributed $6.5K to traditional and proceeded with the backdoor as usual

What I think I need to do:

Amend 2023 return: Add 2024 1099-R from Roth IRA account (with code PJ in box 7). This looks like it results in a small amount of tax owed, due to 1 month of gains (growth between Jan / Feb or 2024).

2024 return: 

1. Enter 1099Rs from both Roth and traditional IRA accounts (same one as in 2023 amended return)
2. Answer “Yes” to “Did you have any excess IRA contributions in 2023?”
3. Answer “Yes” to “excess Roth IRA contributions in 2023 reported on Form 5329, Line 24 and owe additional tax on Form 5329, Line 25? I should grab these amounts after amending 2023 return, I assume??

Anything I’m missing here? Thanks a ton in advance

KeriC

kr_008,

 You are spot on with needing to amend your 2023 return to add the 2024 1099-R form, since code JP is contained in Box 7 of the 1099-R.

 You do NOT need to add the 2024 1099-R form with Code JP to your 2024 return. Beyond that your Steps number 2 and 3 for your 2024 return are correct.

You may find this article helpful:
https://community.freetaxusa.com/kb/articles/174-backdoor-roth-plus-a-recharacterization-recharacterization-happens-after-december-31st-2024-and-later