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March 21, 2025
Question

Do I have a penalty for an excess IRA contribution if it was a rollover payment from my previous retirement account? Is there a different form I need to fill out?

  • March 21, 2025
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March 21, 2025

If your IRA contribution was a rollover from a previous retirement account, you generally won't face a penalty for excess contributions, as long as the rollover was completed within 60 days. However, if the rollover violates the one-rollover-per-year rule, you may incur a penalty.

 

You should get a Form 1099-R from your IRA custodian which reports the rollover. TurboTax can help guide you to enter it. Follow the instructions here to complete forms to report rollover.

 

For more details, visit the IRS page on rollovers of retirement plan and IRA distribution.