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Level 2
posted Feb 19, 2020 2:08:41 PM

Do I wait for an amended return to file this year's taxes?

I learned recently that I have to amend my 2018 Tax Return in order to report an excess IRA contribution made during that year and pay the 6% penalty using Form 5329. Do I have to wait for that amended tax return to be processed before I file this year's tax return? 

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2 Replies
Expert Alumni
Feb 19, 2020 2:25:44 PM

You don't need to wait until you file the amended return to do this year's tax return. However, you do need to correct the excess contribution situation in the current year or you will be penalized again.

 

So for 2019, you need to have withdrawn the excess or contributed that much less for 2019 than the total you were allowed this year.

Level 2
Feb 19, 2020 2:32:41 PM

Thanks! Yes, I have withdrawn the excess Roth contribution made in 2018. However, I did so just this week so my understanding is that I will have to pay the penalty again for 2019.