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Roth IRA Excess contributions from 2019

Forum|Forum|4 years ago
February 20, 2022
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So in 2019 I made some excess contributions to my Roth IRA, I took them out that year (2019) before I filed my taxes, and last year had to do something about them on my 2020 taxes as well. Don't really remember what anymore, paid on the income r something. This year turbo tax is still auto-filling that number in, even though I've taken it all out, paid whatever I needed to pay on it, whatever it is, I thought anyway.

At this point, what do I do with this whole thing? Am I no longer required to report it? The excess contributions question seems to imply *any* contributions from *any* previous years *ever*, but is it only for ones that you haven't taken out and/or are from that tax year year (2021 in this case)? If I keep the number in it asks me to indicate "how much I want to credit toward my 2021 Roth IRA", which is none because... I don't have any technically, or something, but it won't let me keep that number in and file my taxes.

Like what am I missing, because I'm tired of this following me around and I don't know what to do with it at this point. I remember using the deluxe version to deal with this whole thing last year too and they never could come up with an answer either. If anyone has any insight I would appreciate it.

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Best answer by DanaB27

Yes, the excess contributions question only applies if you didn't withdraw the excess contribution plus earning by the due date. In your case, you withdrew the excess contribution plus earnings before the due date of your 2019 return and therefore you didn't have to pay the 6% excess contribution penalty on your 2019 and any future returns.

If the amount is carried over please delete it.

You might want to verify that you didn't pay any excess contribution penalty on your 2019 and 2020 return (assuming you didn't have a new excess contribution that you didn't withdraw). Please check Schedule 2 line 6 if you had to pay additional taxes because of Form 5329 for both years.

If yes, then you will need to amend your returns with Form 1040-X. Please make sure you enter on the 2019 return that you withdrew the contribution by the due date when TurboTax states you have a penalty (under IRA contributions). On the 2020 return you will have to delete any entry in regards to the excess contribution from prior years question. Please see How to amend (change or correct) a return you've already filed.

D

DanaB27Answer

Yes, the excess contributions question only applies if you didn't withdraw the excess contribution plus earning by the due date. In your case, you withdrew the excess contribution plus earnings before the due date of your 2019 return and therefore you didn't have to pay the 6% excess contribution penalty on your 2019 and any future returns.

If the amount is carried over please delete it.

You might want to verify that you didn't pay any excess contribution penalty on your 2019 and 2020 return (assuming you didn't have a new excess contribution that you didn't withdraw). Please check Schedule 2 line 6 if you had to pay additional taxes because of Form 5329 for both years.

If yes, then you will need to amend your returns with Form 1040-X. Please make sure you enter on the 2019 return that you withdrew the contribution by the due date when TurboTax states you have a penalty (under IRA contributions). On the 2020 return you will have to delete any entry in regards to the excess contribution from prior years question. Please see How to amend (change or correct) a return you've already filed.

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