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LR44
New Member

Excess IRA contribution for 2021

I live in Maine where the 2021 tax filing deadline was 4/19/2022. I filed an extension by mail on 4/19, as the PO was closed on 4/18. I received a letter from the IRS stating that my request for an extension was denied because I didn't file by the 4/18 deadline. The reason I needed an extension was because I had my broker transfer the maximum $7000 contribution to my IRA but discovered when preparing my taxes with TurboTax that $4667 was excess - first year of retirement so I wasn't aware of the contribution limitation based on earned income. I notified the broker on 4/18 and requested a withdrawal of $5000 to make it simpler (so I thought) but the withdrawal didn't occur until 4/27, which would have been okay if the extension hadn't been denied. 

I am due a refund, so I won't pay a late filing penalty but will have to pay a penalty for the excess contribution and I'm guessing that it doesn't matter how long after the deadline the $ was in the IRA.

How do I enter the contribution in Turbotax now? The full amount of $7000? If so, when/how will I report the withdrawal of the excess?

 

 

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1 Reply

Excess IRA contribution for 2021

This is a belated response, but perhaps @dmertz can help.

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