Untimely Roth IRA Excess Contribution Help

Forum|Forum|4 months ago
April 14, 2026
1 reply
100 views

I just realized that in I contributed $6,500 to my Roth IRA and $3,000 to my traditional IRA in the 2023 tax year. I am now trying to fix this and would like some help making sure I am doing this correctly.

Even if I contributed to the Roth IRA in June 2023 and the traditional IRA in April 2024 (towards the 2023 tax year), I am supposed to remove the$3,000 from my Roth IRA according to the IRS rules?

Step I am taking:
1. It is an untimely excess contribution so I request a distribution of the $3,000 from my Roth IRA which will trigger a 1099-r with code J for the 2026 tax year.
2. I file a form 5329 for tax year 2023, 2024, and 2025. Can this be a standalone form mailed in or do I need to amend the tax returns?
3. The 5329 form will require a tax penalty of 6% each tax year so I pay the IRS $180 for 2023, $180 for 2024, and $180 for 2025
4. I expect a 1099-r with code J for 2026 tax year and once I report this form on my 2026 tax return everything is resolved.

Are these steps correct or am I missing anything?

And also any earning from the excess contributions are irrelevant in that I can just leave it in the Roth IRA and don’t need to calculate or report it anywhere because it was an untimely excess contribution, is that right?

Benefit Assist Online

DianeW777

Level 15

The answers to your questions are listed below.

Yes, you request a regular distribution of $3,000 and should see code J on your 2026 Form 1099-R.
Yes, the penalty will apply to all three years the excess remained in the Roth IRA. Tax year 2026 will not have the penalty. It is best to file an amendment in this case. Please see How do I amend a tax return for a prior year?
Yes, each year must have Form 5329 and the penalty will be due for each tax year. Interest and penalty will apply for each day the payment is late. It's possible to request relief from the underpayment penalty. Use Form 843 after payment, it never hurts to try and success can happen.
Yes, you will receive a 1099-R with the code J for your 2026 tax year. This will resolve the excess on your 2026 tax return.
Correct, the earnings stay in the Roth IRA and don’t have to be reported anywhere, since the excess was removed after the extended due date.

@Tax039494

[Edited: 08/26/2026 | 2:12 PM PST]

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