Question

Excess Roth IRA Contribution

Forum|Forum|5 years ago
April 28, 2021
1 reply
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I contributed $6000 to my Roth IRA for 2020. My AGI for 2020 was higher than I expected, so I ended up contributing too much for 2020. Rather than recharacterizing the excess to a traditional IRA, my bank allowed me to remove the excess contribution ($4500) and transfer to a non-IRA account. I have already filed my taxes, so how do I amend my taxes to reflect this? TurboTax asks how much I recharacterized from a Roth to a traditional IRA, but the $4500 was not transferred to an IRA, and I do not see options for other situations.

Second question, after I amend my federal taxes to show I removed the excess contribution, do I also need to amend my CA taxes?

Thank you!

Amend

macuser_22

Employee

If returned in 2021 then you will receive a 1099-R next January to report it on an amended 2020 tax return. Wait for the 1099-R. The returned contribution is not taxable but any earnings are. That will be shown on the 1099-R.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**