Question

I neglected to put in a Roth IRA contribution in my 2020 tax return but I was not eligible. I will take the money including gains -- do I need to refile as well?

Forum|Forum|4 years ago
February 16, 2022
1 reply
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TurboTax Online

So, you made a contribution to your Roth in 2020 and you were not eligible to do so. You pulled the money out in 2021 and you are going to file a 2021 return that shows the withdrawal of the excess contributions.

No, don't file the amendment. Do the 2021 return and if the IRS wants more information about 2021 they will notify you. At that point, if you receive notification, then you should file an amendment for 2020.

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N

nmushkatAuthor

I did not pull it out in 2021 Ave will be pulling it out now with any penalties, etc. Does that change your response?

Thank you!

D

DanaB27

You will have to pay the 6% penalty for 2020 and 2021 since you did not withdraw the excess contribution plus earnings by the due date of the 2020 tax return.

You will have to amend your 2020 tax return. Please see How do I amend my 2020 return?.

You should remove the excess contributions (without the earnings) by December 31, 2022, to avoid paying the 6% penalty in 2022 and future years.

To create Form 5329 for the 6% excess contribution penalty in TurboTax please follow these steps:

Login to your TurboTax Account
Click on "Search" on the top right and type “IRA contributions”
Click on “Jump to IRA contributions"
Select “Roth IRA”
On the "Do you have any Excess Roth Contributions" answer "Yes"
On the "Enter Excess Contributions" enter the total excess contribution from 2020