DanaB27
Expert Alumni

Retirement tax questions

Yes, since the contribution was for 2019 you will have to include the contribution in your 2019 tax return. If you haven't done that already then you will have to file an amended 2019 tax return (1040X). Please see How do I amend a 2019 return in TurboTax?. You can file the 2019 1040X anytime, you do not need to wait for your 2020 return.

 

Since you had an excess contribution on your 2019 return and did not withdraw it by the due date of the 2019 return (October 15, 2020  with extensions) you will have the 6% excess contribution penalty on your 2019 return. This is reported on Form 5329. 

 

You will also have the 6% penalty on your 2020 tax return since you did not remove the 2019 excess contribution by December 31, 2020.

 

You will no longer have the 6% penalty in 2021 since you removed the excess contribution in 2021. 

@Cindy F 

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