dmertz
Level 15

Deductions & credits

If you indicated when preparing your 2022 tax return that you would have the excess contribution made for 2022 returned to you by the due date, including extensions, of your 2022 tax return, TurboTax did not report the excess contribution on a 2022 Form 5329.  Failing to actually obtain that distribution means that you now have to file the 2022 Form 5329 to report the excess contribution and pay the 6% penalty for 2022.  Since you filed a 2022 tax return, it's best to file the 2022 Form 5329 along with Form 1040-X where you can provide explanation and indicate that this has no other effect on your 2022 tax return.  The information from the 2022 Form 5329 is then used to complete the 2023 Form 5329 as Opus 17 described.

 

You can find additional information in the instructions for Forms 5329 and 8889.