Excess Roth IRA contribution for 2025, how to show on tax return
I made $7000 contribution to my Roth IRA in June 2025. Now while preparing to file the tax return, freetaxusa is showing me that I have an Excess Roth IRA Contributions.
I checked with custodian (Fidelity) and they have option which I can use to withdraw excess contribution. They also provide he calculation for earnings and how much to withdraw.
There is a loss in my Roth IRA account for 2025 and the fidelity calculation shows the Total amount to withdraw contribution, combined with earnings/loss is $5900.
My question is how do I show these all on my tax return. I want to show it this year itself, so that I don't need to file any amended return next year for 2025.
Deduction → IRA Contribution screens
If I am showing the $7000 contribution amount and $5900, its resulting in additional taxes. How do I show the amounts ?
Should I show $7000 as contribution amount and same $7000 as the amount withdrawn ?
Or
I should not be showing any contribution and withdrawn amount as I am doing it in the same year before filing deadline.
Retirement Income (Form 1099-R) screens
How should I show the amounts ?
- Box 1 : 5900
- Box 2a : 0
- Distribution Code : J
- IRA / SEP / SIMPLE not checked
- Standard 1099-R
If I am choosing Distribution Code : J
- its asking me additional questions and I need to provide the basis in Roth IRA contributions which I am showing as $7000
- it also shows $5900 in the 4a of 1040 and nothing on 4b of the sample return
- Form 8606 is also added to the tax return showing $5900 on line 19 and $7000 on line 22
If I choose Distribution Code : 8
- its shows me a yellow warning (Uncommon Distribution Code)
- it does not show anything on 4a and 4b on form 1040
- there is no form 8606 added to the return
With either of the Distribution Code, there is no difference in the total calculated tax for the 2025.
Answers
-
Hello,
We don't have a recommendation for entering a 1099-R without the original 1099-R. We recommend that you wait until next year to receive the Form 1099-R with the excess distribution and then amend your return.
Removing the excess contribution is very important to do to avoid penalties.0 -
What should
What should I be showing on
Deduction → IRA Contribution screens?If I am showing the $7000 contribution amount and $5900, its resulting in additional taxes. How do I show the amounts ?
Should I show $7000 as contribution amount and same $7000 as the amount withdrawn ?
Or
I should not be showing any contribution and withdrawn amount as I am doing it in the same year before filing deadline.
0

