How to Report Return of Excess Roth IRA Contribution

Question

Do I need to report an excess roth ira contribution if the excess was returned (aka reversed) before the filing deadline? I don’t have earned income and don’t need to file a return.

The excess along with the earnings was removed and 2a on the 1099-R says “0.00” for taxable amount.

Would the 1099-R produced by the brokerage and sent to the IRS with codes “PJ” fulfill the reporting requirement on my behalf or do I need to file form 5329 on its own?

knittingfun · Answer

This article has a section on how to report excess contributions. It says

"Follow this menu path: Deductions/Credits > Common Deductions/Credits > IRA Contributions. Answer “Yes” to the question, “Did you make any traditional or Roth IRA contributions during the year?” Answer for both you and your spouse, if applicable. Then answer the “Excess IRA Contributions” question on that page. It’s fairly rare to have something to enter there. Save and Continue." - it says it's fairly rare, so maybe it's not something you need to list. But the rest of the article might help put this in context.

https://community.freetaxusa.com/kb/articles/172-reporting-a-backdoor-roth-conversion-after-december-31st-2024-and-later