DanaB27
Expert Alumni

Get your taxes done using TurboTax

Yes, if you made an excess contribution then you will have to pay the 6% penalty for each year until you either absorb it with the allowed contribution the next year (if you are allowed to make the contribution) or withdraw it. Please be aware, since it is after the due date if you withdraw the excess you only need to request a regular distribution without earnings.

 

Please see How to amend (change or correct) a return you've already filed

 

For 2019, all you should have to do to trigger the 6% penalty on Form 5329 is to enter your Roth contribution.

 

For 2020, you will enter that you had an excess contribution from prior years and enter the excess contribution amount from 2019.  

 

If you didn't remove the excess by December 31, 2021, then you will enter that you had an excess contribution from prior years and enter the excess contribution amount from 2019.  

 

  1. Click on "Search" on the top right and type “IRA contributions”
  2. Click on “Jump to IRA contributions"
  3. Select “Roth IRA
  4. On the "Do you have any Excess Roth Contributions" answer "Yes"
  5. On the "Enter Excess Contributions" screen enter the total excess contribution from 2019
  6. If you are allowed to make a contribution then you can apply the excess as a current year contribution on the next screen.

 

@PZ_1966

 

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