DanaB27
Expert Alumni

Get your taxes done using TurboTax

Yes, you will need to remove an additional $105 since you removed the excess after the due date of the 2018 return you will have to make a regular distribution of $500 (without earnings and losses).

 

If it was removed in 2022 you will get a 2022 Form 1099-R and you will enter it on your 2022 return.

 

You will have to pay the 6% penalty on the excess contribution for 2018, 2019, 2020, and 2021. Please see How to amend (change or correct) a return you've already filed.

 

On the 2019, 2020, and 2021 returns follow these steps to get the penalty calculated on Form 5329:

  1. Click on "Search" on the top right and type “IRA contributions”
  2. Click on “Jump to IRA contributions"
  3. Select “Roth IRA
  4. Continue until the "Do you have any Excess Roth Contributions" answer "Yes"
  5. On the "Enter Excess Contributions" screen enter the total excess contribution from 2018

 

On the 2018 return, you will enter your Roth contribution and TurboTax will warn you about the excess and then calculate the penalty for you on Form 5329.

 

@rgordon93

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