Skip to main content
Employee
March 24, 2022
Solved

How do I fix my tax form showing an excessive IRA contribution when it is a negative contribution?

  • March 24, 2022
  • 1 reply
  • 0 views

In 2021, I paid a $50 check to my IRA holding Co.  I included the maintenance fee voucher from the statement stating I owed $50. The IRA holding Co. deposited this check as a deposit into my IRA account.  This week, I called the Co. and asked them why I received a 5498 Form that indicated I made a $50 contribution on line 1.  The Co. counted my maintenance fee as a deposit and that caused me to have an excessive contribution of $50.  I am retired and had no 2021 income either.  They have allowed me to withdraw $48 because the $50 deposit had a loss of $2.  On the Turbo Tax program, I entered the $50 excess contribution and the withdrawal of $48.  Now the program and tax form show I have a $2 excessive IRA contribution.  What would happen if I over-ride the $2 and make it a -$2.  Can this be done?  How do I fix this?  Thanks.

    Best answer by DanaB27

    No, you will enter on the penalty screen that you withdrew the $50 contribution during the IRA contribution interview:

     

    1. Click on "Search" on the top right and type “IRA contributions” 
    2. Click on “Jump to IRA contributions"
    3. Enter the $50 contribution and then continue until you get the penalty screen
    4. Enter $50 as withdrawn by the due date

     

     

    1 reply

    DanaB27Answer
    March 24, 2022

    No, you will enter on the penalty screen that you withdrew the $50 contribution during the IRA contribution interview:

     

    1. Click on "Search" on the top right and type “IRA contributions” 
    2. Click on “Jump to IRA contributions"
    3. Enter the $50 contribution and then continue until you get the penalty screen
    4. Enter $50 as withdrawn by the due date

     

     

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
    Employee
    March 24, 2022

    Fantastic.  That works.  Thanks.