Where to report withdrawal of excess Roth IRA without 1099R

TL11000
TL11000 Member Posts: 3 Newcomer
in Filing my taxes

I withdrew the excess roth ira contribution after 4/15 deadline but before the extension. Fidelity does not issue the 1099R until the following year February. In the 1099R screen, I attempted to report the taxable earnings on the withdrawal but I am required to fill out the employer details. Can I report the taxable earnings on another form?

I am younger than 59 and 1/2 years old. The excess withdrawal is exempt from penalty.

Tagged:

Answers

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 636 image
    edited September 29

    Hi TL11000,

    We recommend that you file now without reporting the excess Roth IRA withdrawal and wait until Feb 2026 to get the 1099-R. That way you have the proper amounts and codes and the IRS will have the form in their records. Then file an amended 2024 to report any excess contribution. There are no penalties when you withdraw basis (contribution). Any earnings will be taxable.

  • TL11000
    TL11000 Member Posts: 3 Newcomer

    Hi Matthew,

    Will there be interest owed to IRS on the taxable earnings if I amend the tax return in February?

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 636 image

    Hi TL11000,

    It is possible that there will be interest on any tax due, but not just on the taxable excess earnings. If the earnings on the excess were small, then the tax will be even smaller and any interest on past due tax will be even smaller still.

  • TL11000
    TL11000 Member Posts: 3 Newcomer

    I understand it is small but I hate to give IRS more money than I should. Can I report the taxable earnings on the tax return using the investment screen instead? and pay the supposedly tax dues this year by the extended deadline. Then amend tax return in February using the issued 1099R then.

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 636 image
    Hi TL1000,

    I understand your concern. When you report earnings from an excess retirement contribution without a 1099-R, you can potentially misclassify the income. If you report the earnings, report it as retirement earnings not as investments. Keep in mind that at this point, you may owe the IRS some interest on unpaid taxes, even when you filed an extension. However, if you have another way to report it, that you are satisfied with, you could do that and then amend in February when you get the 1099-R.

Categories