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Hall69
New Member

Why is there still a 6% penalty in 2018 after withdrawing the overcontribution and proceeds, filing an amendment and paying the penalty for 2016 and 2017?

I overcontributed to Roth IRA for 2016 and 2017. Once realized before filing tax for 2017, I withdrew the extra contribution and proceeds, filed an amendment and pay penalty (both 6% and 10%) for both years. Now, I'm filing for 2018 tax. I still see 6% charge. Do I still need to pay another 6%? If not, how do I get rid of it in Turbotax?
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Accepted Solutions

Why is there still a 6% penalty in 2018 after withdrawing the overcontribution and proceeds, filing an amendment and paying the penalty for 2016 and 2017?

Click through the Roth contribution  interview until asked of there was an excess. Say yes, the carry forward amount should show.  Then enter the amount removed so there is zero 2018 excess.

Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR  Use the "Tools" menu  (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.

**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.**

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1 Reply

Why is there still a 6% penalty in 2018 after withdrawing the overcontribution and proceeds, filing an amendment and paying the penalty for 2016 and 2017?

Click through the Roth contribution  interview until asked of there was an excess. Say yes, the carry forward amount should show.  Then enter the amount removed so there is zero 2018 excess.

Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR  Use the "Tools" menu  (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.

**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.**

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