Retirement tax questions

No.    An excess must have been removed by the due date of the 2019 tax return which was July 15, 2020 for this year because of the COVID-19 delay.   IF a timely extension was requested before that due date (of the 2019 return was filed before the due date) then you had until the extended due date (Oct 15, 2020) to remove the 2019 excess without penalty.

 

(The 6 month extension is from April 15 to Oct 15, the COVID-19 filing delay did not change the extension date.)

 

If not removed before that due date then a 2019 6% penalty applies to the 2019 excess(reported on your 2019 tax return)  but it must still be removed as a normal distribution, not a removal of excess contribution since it is too late to do that.  If not removed BEFORE Dec 13, 2020 then ANOTHER 2020 6% penalty will apply and will repeat every year until removed.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**