Question

Roth IRA excess - withdrawn, but no 1099-R

Forum|Forum|5 years ago
April 23, 2021
1 reply
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Hi

I made an excess contribution to Roth IRA of $4000 in 2019 and paid a penalty of 6%. This year in March 2021, I withdrew all the amount (excess contribution + gains) from Roth IRA. As 1099 R will be generated next year in Jan 2022, When should the distribution of excess contribution and gains be reported on the tax return i.e. 2020 or 2021? Should I wait to receive 1099R to report the distribution and gains till next year or can I apply it this year ?

Also, do i have to pay the 6% excise tax while filing in 2021 for year 2020.

D

DanaB27

Since you withdrew the excess contribution after the due date of the 2019 return you will include the 1099-R in the year you withdrew the contribution. Therefore, you will include the 1099-R on your 2021 return.

Yes, you will have to pay the 6% penalty on your 2020 tax return since you did not withdraw the excess contribution by December 31, 2020.

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