I need to file a form 5329 for exceeding the MAGI limits for a ROTH IRA in the tax year ending in 2020.
Can I generate the form in TurboTax Deluxe 2021 to calculate the penalty and interest due because of this error made in the tax year 2020 and submit the form 5329 with my 2021 tax submittal? Or do I need to generate the form 5329 in the tax year 2020 in Turbo Tax and submit with my 2021 tax return or submit separately with no 1040 tax return? In either case, I’d rather not use the forms mode since what I’ve experience thus far, the form 5329 isn’t tied in with the step by step method, permitting a flow of data entries from the step by step method to generated form 5329
I will be re-characterizing a 2020 ROTH IRA, that I was not allowed since I exceeded the MAGI limits, to a Traditional Non-Deductible IRA in the tax year 2020, for which I understand does not have any MAGI limitations, correct?
Since this correction is for the tax year 2020, and no deduction was taken since it was a ROTH IRA in 2020, I’m assuming this can be handled by not preparing an amended 2020 Tax Return, Correct?
I’ve requested the re-characterization for this 2020 Roth IRA to a Traditional Non-Deductible IRA from the Mutual Fund that is holding the ROTH IRA. I assume they will be sending out amended/corrected 1099-R’s and whatever forms needed to process the change in Turbo Tax or will I need to perform detailed analyst of the disallowed 2020 ROTH IRA to provide figures needed such as the value of the 2020 ROTH IRA and any earned Income/Loss, etc..
I’m using the Deluxe version of Turbo Tax; will upgrading to the Premier version provide me with additional guidance in preparing form 5329 for the issue I’m trying to resolve?
