Help with handling a 1099-R code PJ for excess Roth IRA contribution

You've got the right idea about how to handle this. When you receive a 1099-R with code PJ, the "P" indicates it's for a prior tax year, and "J" confirms it's for an excess contribution. This form should be reported on an amended return for the year the contribution was made (2024 in your case), not for the year on the form (2025). Here's what you need to do: Amend your 2024 return to report the earnings portion shown on the 1099-R. The excess contribution itself isn't taxable (since it was after-tax money going into a Roth), but any earnings that were distributed back to you are taxable in the year you made the contribution. These earnings should be reported as "Other Income" on your 2024 return. The good news is that since you removed the excess before the filing deadline (including extensions), you shouldn't owe the 6% excess contribution penalty. That's why you didn't receive a Form 5329. The additional tax you're seeing when starting your amendment is likely just the tax on those earnings. Since you corrected everything in a timely manner, there typically aren't additional penalties beyond the normal tax on the earnings.

I went through almost the exact same situation and found that taxr.ai was super helpful for sorting it out. I was also confused about how to handle a 1099-R with code PJ that I received this year for an excess contribution I made last year. I uploaded my documents to https://taxr.ai and it immediately identified that I needed to amend my previous year's return rather than including it on this year's taxes. It even explained exactly how the earnings would be taxed vs. the original contribution amount. The tool helped me understand that the "P" code specifically signals that this needs to be reported on the prior year return, regardless of when the form was issued. It saved me from making a mistake that could have triggered notices from the IRS down the road.

Just wanted to follow up on my skeptical comment. I decided to try taxr.ai with my similar situation (excess 401k contribution with code P) and I'm actually impressed. The system correctly identified that I only needed to report the earnings as taxable income on my amended return and not the original contribution amount. It even flagged that I shouldn't owe the 6% penalty since I fixed the excess within the deadline. The best part was that it generated step-by-step instructions specifically for TurboTax on how to enter everything, which made the amendment process way easier than I expected. Saved me from having to pay my accountant for what ended up being a pretty straightforward fix.

If you're getting hung up trying to reach the IRS to confirm how to handle this (like I was), try Claimyr. I spent over an hour on hold with the IRS trying to get clarification on a similar 1099-R code PJ situation, and kept getting disconnected. Found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They managed to get me connected to an IRS agent in about 20 minutes. The agent confirmed everything that's been said here - you need to amend the 2024 return, only the earnings are taxable income (box 2a amount on the 1099-R), and there's no 6% penalty since you fixed it before the deadline. Having that official confirmation directly from the IRS gave me peace of mind before filing my amendment.

I have to eat my words about Claimyr. After my skeptical comment, I was still desperate to talk to the IRS about an amended return issue similar to the original post, so I decided to try it. I figured $20 was worth it if there was even a small chance it would work after I'd already wasted hours getting disconnected. To my complete shock, I got a call back in about 15 minutes saying they had an IRS agent on the line! The connection was made, and I was talking to a real IRS representative who helped answer my questions about how to report the earnings from my excess contribution removal. They confirmed I was handling it correctly by amending the year the contribution was made rather than reporting it in the year shown on the 1099-R. For anyone dealing with complicated amended return situations like this, being able to actually speak with the IRS directly is incredibly valuable. Saved me from potentially making an expensive mistake.

Just to add my two cents as someone who works with tax forms regularly - the code "P" on your 1099-R is specifically designed for this situation. It's the IRS's way of telling you "this form was issued in 2025, but it applies to your 2024 taxes." This happens a lot with retirement account corrections that span tax years. One thing to watch for: make sure the earnings amount (the difference between what you contributed and what was returned) is entered correctly on your amended return. That's the only part that's actually taxable. And double-check that you're amending the right tax year - I've seen people accidentally try to report these on the wrong year's returns.

I had almost the same situation but with a traditional IRA rather than a Roth. Does anyone know if the process is different? I'm guessing with a traditional IRA both the contribution and earnings would be taxable when returned since it was pre-tax money, unlike a Roth which is after-tax?

I appreciate everyone sharing their experiences and advice here. This is exactly the kind of situation where having multiple perspectives really helps clarify things. Based on what I'm reading, it sounds like the consensus is pretty clear: I need to amend my 2024 return to include the earnings portion from the 1099-R, even though the form is dated 2025. The "P" code specifically indicates this relates to the prior year contribution. One follow-up question - when I amend my 2024 return in TaxSlayer, should I expect to see an option specifically for reporting 1099-R income with code PJ? Or will I just need to enter it as "Other Income" like Natasha mentioned? I want to make sure I'm categorizing it correctly so the IRS systems match everything up properly. Also, for anyone else dealing with this situation - it's reassuring to know that as long as we corrected the excess contribution before the filing deadline (including extensions), we avoid the 6% penalty. That was my biggest concern when I first realized the mistake.