@devildog8526 wrote:
Let’s say in this example that I was able to apply the excess to contribution to year 2020 the way you described. You said at this point it would be done. Does any action at all need to be taken with the bank or custodian account? Or is applying the excess through the tax return enough to correct this situation?
Why are you asking about 2020? You may want to start a new discussion that is specific to your facts.
However, the answers in this thread contain what you need to know. If you made an excess Roth contribution in 2019, you must first file an amended 2019 return containing form 5329 to document the contribution and pay the penalty. Then, if are you eligible to make Roth contributions in 2020 but did not, and want to "use up" the 2019 excess by counting it toward 2020, that also needs to be reported on your tax return where it will go on form 5329 along with the prior information to document that the excess was corrected and no further penalty is owed.
