DavidS127
Expert Alumni

Retirement tax questions

In response to your questions:

 

@sjsingh2

  1. Because your excess Roth IRA contributions are being removed after the last date for penalty-free corrective actions, you won't need to amend your tax returns prior to 2019 to report any income on the excess contribution. 
  2. If there are earnings on your 2019 excess contribution that are removed before the due date of your 2019 tax return, those are reported in the year the contribution is made.  So, if the 2019 excess contribution has earnings (not losses) those earnings will need to go on an amended 2019 tax return.  The 10% early withdrawal penalty on the 2020 distribution is applied only to any earnings, not the excess contribution amount.
  3. No.  You can't fix everything with the 2019 filing you are about to make.  You will need to wait until you receive your  2020 1099-Rs that remove all the excess contributions so that you will know if you need to amend 2019 for any earnings on the 2019 excess contribution. 

[Edited 7/13/2020| 4:37pm PDT]

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"