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March 9, 2022
Question

I uploaded my 1099-R form and outlined that I removed the excess contribution from my Roth IRA, but line 20 of my 5329 form is showing $0 for 2021 distributions taken.

  • March 9, 2022
  • 1 reply
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In 2020 I added too much to my Roth IRA. In 2021 I removed this amount. I already amended my 2020 return paying the penalty for the excess contribution. Do I have to pay the penalty for over contribution again for 2021 even though I removed the excess (section 4 of 5329 form)?

1 reply

March 9, 2022

No, if you removed the 2020 excess contribution before December 31, 2021, then you do not have to pay the 6% penalty for 2021.


To verify, you removed the excess contribution after the 2020 tax return due date since you are paying the 6% penalty for 2020? The distribution should show on line 20 of Form 5329 after you enter your 1099-R. What is the code in box 7 of your Form 1099-R? 

 

 

Please make sure that the excess contribution amount is carried over and shows on the "Enter Excess Contributions" screen. 

 

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