Reporting Roth IRA Excess Contribution and Removal

TaxesNeverEasy
TaxesNeverEasy Member Posts: 1 Newcomer
in Filing my taxes

For tax year 2024, I contributed $7000 to a Roth IRA, but recently realized that I'm over the income limit; therefore, I requested for the excess contribution be removed along with all the corresponding earnings; all of this was done prior to filing 2024 taxes. Although I have not received form 1099-R for the excess contribution/distribution(?), I'm going to report the taxable income (from the earnings) in my 2024 taxes because I have all the respective amount that need to be reported.

Once I've entered all the what-would-be-the-1099-R information and report the taxable income from the excess contribution, in a latter screen FreeTaxUSA prompts me if I contributed to an IRA and how much I contributed, (Question #1) am I supposed to say that yes, I've contributed to a Roth and the amount even though the contribution and earnings were removed for 2024? I went ahead and entered the Roth IRA contribution amount of $7000 and the system correctly told me that there's an excess Roth IRA contribution, by how much and when I'll withdraw the excess, (Question #2) so do I go ahead and select yes, the amount will be withdrawn by April 15th and enter the excess amount withdrawn of $7000? I'd like to confirm that although the excess contribution and removal was already explain in the 1099-R form section, that I also need to enter the distribution and removal in this other section (mentioned in Questions 1 and 2).

Answers

Categories