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I had an excessive contribution of around 3000$ to my Roth IRA in 2013. I thought I fill the form8606, but I couldn't find it in my 2013 packet. what can I do now?

Forum|Forum|7 years ago
June 3, 2019
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Best answer by macuser_22

It would appear that you did not report it at all on your 2013 tax return. What you need to do is file a 2013 8606 form for a non-deductible 2013 contribution (it is too late to amend 2013 for a deduction).

Download the 2013 8606 and enter the 2013 contribution on line 1, any previous (before 2013) non-deductible basis from a previous 8606 line 14 on line 2. Add 1 & 2 on line 3 and 14.

(There is $50 penalty for failing to file the 8606 when required, but the IRS usually waives the penalty.)

2013 8606 - https://www.irs.gov/pub/irs-prior/f8606--2013.pdf

2013 instructions - https://www.irs.gov/pub/irs-prior/i8606--2013.pdf

Where to mail: https://www.irs.gov/uac/where-to-file-paper-tax-returns-with-or-without-a-payment

Keep the 8606 copy for when you take a distribution - you will need the line 14 value.

macuser_22

Employee

Roth contributions do not go on a 8606 form.

Are you thinking of the 5329 for paying the 6% penalty for an excess contribution?

Have you removed the excess?

The 6% penalty would repeat in 2014, 2015, 2016, 2017 and 2018 and would require a 5329 filed for each year with an additional 6% penalty. If the excess is still there the penalty will repeat again for 2019 if not removed by years end.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

T

tianwaifeixianAuthor

Sory I didn't mention in my question is that I recategorize the ecessive part to traditional IRA

macuser_22

Employee

That would depend on how you reported the recharacterization in 2013. If your MAGI qualified you for a Traditional IRA deduction, no 8606 would be produced and the deduction would have been reported on the 2013 1040 form line 32 (1040A line 17), or if you chose not to deduct then it would be reported on a 2013 8606 line 1.

Both of those required that the Roth contribution was properly entered into the 2013 TurboTax IRA contribution interview and you answered the questions that the Roth contribution was "switched" (recharactorized) to a Traditional IRA. If you failed to do that then it would not have been reported at all.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

T

tianwaifeixianAuthor

Thank you! I went back to check my 1040 for 2013. Line 32 (IRA deduction) is empty. And, there is no for 8606 in the package. So does that mean I didn't report this at all back in 2013? If that is the case, what should I do? By the way, my AGI (line 37 on 1040 was 181k, so I believe I was not qualify for non deductible IRA anyway?)

macuser_22Answer

Employee

It would appear that you did not report it at all on your 2013 tax return. What you need to do is file a 2013 8606 form for a non-deductible 2013 contribution (it is too late to amend 2013 for a deduction).

Download the 2013 8606 and enter the 2013 contribution on line 1, any previous (before 2013) non-deductible basis from a previous 8606 line 14 on line 2. Add 1 & 2 on line 3 and 14.

(There is $50 penalty for failing to file the 8606 when required, but the IRS usually waives the penalty.)

2013 8606 - https://www.irs.gov/pub/irs-prior/f8606--2013.pdf

2013 instructions - https://www.irs.gov/pub/irs-prior/i8606--2013.pdf

Where to mail: https://www.irs.gov/uac/where-to-file-paper-tax-returns-with-or-without-a-payment

Keep the 8606 copy for when you take a distribution - you will need the line 14 value.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

macuser_22

Employee

I would also mail certified with return receipt since the IRS will not acknowledge receipt of the 8606 form, so a return receipt is your only proof that it was received by the IRS.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**