Question

I just realized I have made an excess contribution to a coverdell account, what do I do now? Please help.

Forum|Forum|4 years ago
April 12, 2022
1 reply
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My AGI is too high, and I should not have made a contribution to my two daughter's coverdell accounts. What do I do now? I don't recall a section where they asked this question, did I miss it? What if I did this in previous years and don't know about it?

TurboTax Premier Online

T

TomK2023

Excess contributions to a Coverdell ESA (contributions more than $2,000) are entered under Education in the Deductions & Credits section. Say yes to "Were you the beneficiary of a Coverdell Education Savings Account (ESA)?" and hit Continue. You will be able to enter the excess contributions on the next screens.

Excess contributions that are not removed in a timely manner are subject to a 6% excise tax for each year the excess remains in the Coverdell Education Savings Account at the close of the tax year (December 31).

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