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Retirement tax questions
2004taxfile1, this excess contribution is subject to 6% excess-contribution penalties on 2017, 2018, 2019 and 2020 Forms 5329. If the contribution was for 2016, it is also subject to a 6% excess-contribution penalty on a 2016 Form 5329. With no distributions in those years, there is no early-distribution penalty to be reported on those Forms 5329. The distribution in March 2021 will appear on your 2021 Form 5329 Part IV, reducing the excess for 2021 to zero.
There is no tax or early early-distribution penalty on the distribution of $6,500 because that is a distribution of contribution basis, even though that basis derived from an excess contribution. The unnecessary removal of an amount equal to the earnings attributable to that excess contribution will be taxable if you made no other Roth IRA contributions, but the distribution will not be subject to any early distribution penalty because you reached age 59½ in 2017.
Did you make any prior Roth IRA contributions that were not excess contributions?