Question

When to amend return for excess Roth contributions?

Forum|Forum|4 years ago
September 23, 2021
1 reply
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I discovered I was ineligible to contribute to a Roth IRA in 2020 and 2021. I filed my return for 2020 already. I had the custodian withdraw all contributions and earnings prior to Oct 15, 2021 to avoid the 6% penalty. Do I need to amend my 2020 return prior to Oct 15, 2021 to avoid the 6% penalty, or can I wait until I receive the 1099-R in 2022 and amend my 2020 return then?

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macuser_22

Employee

No you have 3 years to amend. The Oct 15 2021 dead line is to remove the excess, not to amend.

There is no advantage whatsoever to amend prior to receiving the 2021 1099-R in January of 2022. If you amend and enter it incorrectly then you will need to amend again that can take over a year.

**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.**