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Level 1
posted Mar 29, 2021 7:13:22 AM

Amend Return after Return of Excess Contribution

The IRS has already accepted my tax return for 2020. I realized I had an excess contribution to my Roth IRA in 2020 after filing the 2020 tax return. Fidelity returned my 2020 excess contribution and earnings in 2021. Fidelity said they will not issue any new tax forms until 2022. Do I file an amended return for 2020 or include the 2020 excess contribution and earnings in my 2021 tax return in 2022?

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1 Replies
Expert Alumni
Mar 29, 2021 7:28:10 AM

You should amend your 2020 tax return

 

If you withdrew your 2020 excess contribution to your Roth IRA before the due date of the 2020 tax return, make sure that you also withdraw the related earnings.

 

On your 2020 amended tax return, do not report the excess contribution as it has been withdrawn. The earnings have to reported and taxed. These earnings are also subject to 10% early withdrawal penalty.

 

Please see this TurboTax FAQ for instructions on how to amend your tax return in TurboTax.

  

When you receive the 2021 form 1099-R (in 2022) for this withdrawal, there is no further action needed.