excess ROTH ira last year, removed before April 15m but TurboTax is saying I owe additional tax on form 5329

Forum|Forum|11 months ago
April 17, 2025
2 replies
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I contributed too much to my ROTH in 2023, Removed the excess in March 2024.

Now TurboTax is saying I owe additional tax on form 5329... for the amount that I removed. How do I fix this?

fanfare

Employee

@ndimitru

DanaB27

Please follow these steps to remove the excess contribution entry:

Click on "Search" on the top right and type “IRA contributions”
Click on “Jump to IRA contributions"
Select “Roth IRA”
On the "Enter Excess Contributions" screen delete the entry.

You might want to check you 2023 return to verify that you did not pay the 6% penalty on Form 5329. You do not need to pay the 6% penalty if you removed the excess contribution plus earnings before the due date of the 2023 return. If you show the 6% penalty on your 2023 return then please see How do I amend my federal tax return for a prior year?

The earnings are taxable in the year the contributions are made therefore you should have gotten a 2024 Form 1099-R with code P and J. This form belongs on your 2023 return.

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ndimitru Author

I do not see any JUMP TO link. When I search for IRA Contributions, the Digital Assistance only returns SEP IRA information.

Can you tell me where in the forms I need to change this? I am amending my 2023 return now, since that is the year I over contributed, adding the 1099-R manually. Then I need to amend the 2024 return as well?