DavidS127
Expert Alumni

Retirement tax questions

Yes, for 2019 excess Roth contributions removed before the due date of the 2019 return (with losses), it is as if the contribution never happened (other than entering in your 2020 tax return the 2020 1099-R you will get for the removal of the 2019 contribution).

 

For the 2017 and 2018 excess Roth contributions, you'll also want to get those out in 2020, so that 2019 is the last year you pay the penalty on those.  You'll get 2020 1099-Rs for these as well.  Because these excess contributions are being removed after the last date to take corrective action without penalty, there is no need to remove the earnings associated with the excess contributions prior to 2019.

 

To report on the 2017 and 2018 excess Roth contributions in 2019, click the "magnifying glass Search" icon on the top row, enter "excess roth ira contribution" in the search window and press return or enter, and then click on the "Jump to excess roth ira contribution" link.  Click the box that you have a Roth IRA, and then continue through the screens until you get to the "Do You Have any Excess Roth Contributions" screen.  Answer Yes, and you'll next get a screen to enter the amount of the 2017 and 2018 contributions that you had not withdrawn before the end of 2019.

 

[Edited 7/13/2020| 4:50 pm PDT]

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