Reporting 1099r code J

scouse_s
scouse_s Member Posts: 7 Newcomer
edited March 14 in Filing my taxes

I made a Roth IRA contribution for 2022 in 2023. Later in 2024, I realized I was ineligible to make direct Roth IRA contribution, hence I removed the excess contribution through fidelity and paid 6% penalty for 2022 and 2023 using form 5329. Now I received form 1099r with code J listing the amount that I withdrew ( 2022 contribution of $6000 with code J). How should I report it using Free tax USA software ? I understand I have to fill out 1040 lines 4a and 4b, form 5329 part 4 and 8606 part 3.

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Answers

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 581

    Hi Scouse_s,

    Code J on a 1099-R is an early Roth Distribution with no known exception and will show up as 100% taxable, unless you take the next steps.

    After you enter the 1099-R continue to the "Roth IRA / SEP / SIMPLE Basis" page. On that page enter your basis in Roth (which is your contribution.) Press Save and Continue. This will ensure your Roth distribution basis is not taxable. Any earnings will be taxable.

    IRABasis.JPG

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