Get your taxes done using TurboTax

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@haha666 wrote:

So, the question in TurboTax should change to -

Excess Contributions Withdrawn

Did you withdraw any excess contributions made to a traditional IRA after the due date (including extensions) of last year’s return and before/on the last day of last year?

 

Otherwise, the withdrawal after due day (including extensions) of last year’s return could also happen any day in Year 2020 before submitting 2019 tax return. 

 

Correct?

Thanks!

 

 

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No.  Last years return was 2018 and you had until April 15, 2019 (or Oct 15 2019 if you filed and extension) to remove it.   After that it is subject to the 6% penalty.   You did not have until the end of 2019 to remove it AND and earnings attributed to the excess.

Now, for 2019 tax, since the 6% 2018 penalty was paid,  you no longer have to remove the earnings, only the excess and you had the entire 2019 calendar year to do that not just to the due date, since that was not done, the you owe another 2019 6% penalty.   To avoid another 2020 you have the entire 2020 calendar year to remove it.

The "by the due date" only applies to the year that the contribution was for, not subsequent years.   TurboTax is correct.