☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted May 18, 2021 5:55:32 AM

Do I need to amend if my excess ROTH contributions were a loss?

Hi,

 

I filed my 2020 return in Feb. I did not report any ROTH contributions as I contributed for the 2020 tax year after filing.

 

An excess ROTH contribution was discovered in May after filing and removed at a small attributable loss.

 

Do I still need to amend my 2020 return? My 2020 5498 form shows the amount INCLUDING the excess. 

 

Thanks

 

0 3 630
3 Replies
Employee Tax Expert
May 18, 2021 6:19:59 AM

If you had entered the Roth IRA contribution in TurboTax and didn't enter that you withdrew the excess contribution by the due date, then you will have the 6% penalty on your return. You  removed the excess in time therefore you do not owe the 6% penalty and want to amend your return to remove it.  Please see How to amend a tax return for instructions.

 

Only the earnings from an excess contribution have to be included in your taxable income.

Returning Member
May 18, 2021 6:26:02 AM

Thanks.

 

I didn't enter the ROTH on my taxes at all. 

 

My 2020 5498 shows the entire contribution including the excess. I am concerned this will cause a problem with the IRS if I don't amend.

 

Employee Tax Expert
May 18, 2021 6:50:17 AM

No, it will not create issues.