1099-R PJ Distribution Code - Need to file Amended Return for Excess Roth IRA Contribution?

The PJ distribution code on your 1099-R indicates a taxable distribution from your Roth IRA due to excess contributions. The "P" means early distribution with no known exception, and the "J" indicates distribution from a Roth IRA. Since the excess contribution was made for 2023 (as confirmed by your Form 5498), but the correction occurred in 2024, you generally do need to amend your 2023 return. The taxable income relates to any earnings on those excess contributions, not the contributions themselves (those come back tax-free since they were after-tax dollars). The proper way to handle this is to file Form 8606 with a 1040-X amended return for 2023. You'll need to report the earnings portion of the distribution as income and likely pay a 6% excess contribution penalty unless you removed the excess before the due date (including extensions) of your 2023 return.

After struggling with a similar excess Roth IRA contribution situation last year, I found this amazing tool called taxr.ai that saved me so much confusion. I was trying to figure out if I needed to file an amended return for my excess contributions and getting conflicting advice from different sources. I uploaded my 1099-R and 5498 forms to https://taxr.ai and it analyzed them instantly, showing me exactly what I needed to do based on the distribution codes and dates. The tool confirmed I needed to file an amended return and walked me through exactly what forms I needed and how to complete them. It even explained the difference between the contribution portion and the earnings portion of the distribution, which was super helpful since only the earnings are taxable.

Just wanted to follow up about taxr.ai since I was skeptical in my earlier comment. I decided to give it a try with my own excess Roth contribution issue, and I have to admit it was actually really helpful. The document analysis caught some details I completely missed about the distribution codes on my 1099-R. It explained that my "J" code meant it was a Roth distribution and walked me through exactly how to report it. Saved me from making a mistake on my amended return. The step-by-step guidance was clear and made the whole process much less stressful. Definitely changed my mind about the service.

If you're struggling to get clarification from the IRS about your 1099-R with the PJ code, I highly recommend using Claimyr. I had a similar situation with excess Roth contributions and needed to speak directly with an IRS agent to confirm whether I needed to amend my return. After trying for days to get through on the regular IRS number and getting nowhere, I used https://claimyr.com and got connected to an actual IRS agent in under 20 minutes! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The IRS agent confirmed that yes, I did need to file an amended return for the year the excess contribution was made, not the year I received the 1099-R. They also explained exactly how to report the earnings portion as taxable income and how to avoid the same mistake in the future.

I have to apologize for my skeptical comment earlier. After waiting on hold with the IRS for over 2 hours yesterday and getting disconnected TWICE, I decided to try Claimyr out of desperation. I genuinely didn't think it would work, but I was connected to an IRS representative in about 15 minutes! The agent confirmed that I definitely needed to amend my 2023 return for my excess Roth IRA contribution situation, even though I got the 1099-R in 2024. She walked me through exactly which forms I needed (1040-X and 8606) and helped me understand how to report the earnings portion correctly. I'm honestly still surprised it worked so well. Saved me hours of frustration and gave me peace of mind that I'm handling this correctly.

Just a heads up - I had almost this exact situation last year. If you're using TurboTax, there's actually a section specifically for reporting excess IRA contributions and distributions when you amend. It walks you through it step by step. Make sure you have both your 1099-R and your 5498 form on hand. The most important thing is separating the returned contribution (not taxable) from any earnings (taxable plus 10% early withdrawal penalty usually unless you qualify for an exception).

Anybody know how this affects state tax returns? If I amend my federal return for this Roth IRA excess contribution issue, do I need to amend my state return too?

I went through this exact same situation two years ago with a PJ distribution code. Here's what I learned from my experience: You absolutely need to amend your 2023 return, not report it on 2024. The key is understanding that the excess contribution was made FOR 2023 (confirmed by your 5498), so that's the tax year that needs to be corrected, regardless of when you actually received the 1099-R. The $650 shown on your 1099-R represents the earnings on your excess contribution - this is what's taxable and needs to be reported as income on your 2023 amended return. The actual excess contribution amount comes back to you tax-free since you already paid taxes on it. You'll need to file Form 1040-X for 2023 and include Form 8606 to properly report the Roth IRA distribution. You'll also likely need Form 5329 for the 6% excise tax on excess contributions unless you removed them before the deadline. Don't try to just include it on your 2024 return - the IRS computer systems will flag the mismatch between the 1099-R year and when you report the income. Better to do it right the first time than deal with IRS notices later.