I contributed 6,000 to my 2019 Roth IRA which created an excess contribution of $114. I made that contribution on April 2020 after I filed my 2019 taxes. I understand that I don’t have to report Roth IRA contributions. However, I must pay the 6% penalty fee on the excess amount for each year the money remained in the account. I removed the excess on January 2021, so 2 years of fees are due now.
- Can I report it on my 2020 tax return with the form 5329 OR do I have to amend my 2019 tax return? Either way, how do I do it on TT?
Also, I took out the excess contribution, without earnings, as a normal “Roth IRA distribution” instead of a “return of contribution” because they would’ve taken the earnings out too, which I didn’t need to in this case.
- Is this OK? Does it make a difference?
Please Help 🙂
@Anonymous_ @DawnC @ColeenD3 @AmyC @DaveF1006
