Form 5329 without 1099-R

hari

I switched job in 2025 and crossed annual Roth 401k contribution limit in total. I removed excess amount from Roth 401k in 2026 before April deadline. However 401k provider said I will receive 1099-R in 2027. Because it is Roth my original contribution is already taxed however as per IRS I need to pay tax on earning and 10% early withdrawal penalty with 2025 return itself. I entered earning as additional income (not as 1099R) however I don't know how to enter early withdrawal penalty (form 5329) in website without 1099-R. Please advise.

JanaA

Hello hari!

Because this is a Roth 401(k) and you removed the excess contribution before the tax filing deadline, this is considered a timely corrective distribution. The IRS specifically exempts timely corrective distributions of excess 401(k) contributions from the 10% early withdrawal penalty (per IRC sections 401(k)(8)(D) and 402(g)(2)(C)). You can confirm this on the IRS page below. This means you generally would not need to file Form 5329 to report a 10% penalty in this situation.

What you do need to report on your 2025 return is the earnings that were distributed along with the excess contribution. Those are taxable as ordinary income in the year the excess contribution was made (2025). It sounds like you've already added those earnings as additional income, which is the right direction.

Since the 1099-R won't arrive until 2027, the recommended approach is to file your 2025 return now with the earnings included as income, then amend the return once you receive the 1099-R in early 2027 to make sure everything matches up properly.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions