Possi Posted April 7, 2021 Report Share Posted April 7, 2021 (edited) This client has FOURTEEN 1099Rs listed on one statement. Seven for each spouse. Ranging from $17 to $574, totaling $2973 for each spouse in box 1 and zero in box 2 taxable. The box 7 code is JP. I believe it is just the growth that is taxable. I'll find out exactly how much they put into the accounts and make the taxable amount equal the growth. Am I doing the right thing? I have never seen this before. Edited April 7, 2021 by jklcpa fixed typo in title Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 7, 2021 Report Share Posted April 7, 2021 Code JM or JP? If P, then excess 2019 contribution removed in 2020; therefore taxable in 2019. See Table 1 plus all the explanations and examples. https://www.irs.gov/pub/irs-prior/i1099r--2020.pdf Quote Link to comment Share on other sites More sharing options...
Possi Posted April 7, 2021 Author Report Share Posted April 7, 2021 5 minutes ago, Lion EA said: Code JM or JP? If P, then excess 2019 contribution removed in 2020; therefore taxable in 2019. See Table 1 plus all the explanations and examples. https://www.irs.gov/pub/irs-prior/i1099r--2020.pdf I'm sorry, it's JP. So, do I input zero taxable and amend 2019 for any growth that may have happened? It must be minimal, if any, because each one is so small. Am I overthinking this? I am purely exhausted. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 7, 2021 Report Share Posted April 7, 2021 Sorry, that's all I got. I used to get a lot of Code P for excess contributions to fully taxable retirement plans. But yours are Roths, right? Did the principal come from salary reduction? If so, then the full amount would've been part of wages in 2019: P—Excess contributions plus earnings/excess deferrals taxable in 2019. Quote Link to comment Share on other sites More sharing options...
Possi Posted April 7, 2021 Author Report Share Posted April 7, 2021 1 minute ago, Lion EA said: Sorry, that's all I got. I used to get a lot of Code P for excess contributions to fully taxable retirement plans. But yours are Roths, right? Did the principal come from salary reduction? If so, then the full amount would've been part of wages in 2019: P—Excess contributions plus earnings/excess deferrals taxable in 2019. Thanks. I got it. Quote Link to comment Share on other sites More sharing options...
Possi Posted April 7, 2021 Author Report Share Posted April 7, 2021 @Lion EAJust following up, these were overpayments that had to come out before the 2019 deadline. They were a loss, no gains. Whew! Thanks for helping me! Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 7, 2021 Report Share Posted April 7, 2021 If they'd been a payroll deduction for his 2019 W-2 and ended up being excess payments (highly compensated or whatever) then they are taxable on his 2019 tax return. Quote Link to comment Share on other sites More sharing options...
Possi Posted April 7, 2021 Author Report Share Posted April 7, 2021 3 minutes ago, Lion EA said: If they'd been a payroll deduction for his 2019 W-2 and ended up being excess payments (highly compensated or whatever) then they are taxable on his 2019 tax return. No, the financial planner had it all set up and I had to call him and let him know it was a NO GO. Quote Link to comment Share on other sites More sharing options...
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