- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
1. When amending with TurboTax, you should see TurboTax adding Forms 5329 to your tax return, one for each of you, and including the penalty on Schedule 2 line 8, propagating to showing a change on Form 1040-X line 10 to be included in your balance due with the amendment. If you are not able to apply the excesses as contributions for 2024, your 2024 tax return will also include Forms 5329 calculating the 6% penalties on the excesses.
2. Correct. Each of you must request an ordinary Roth IRA distribution equal to the amount on line 24 of your respective Forms 5329. This will eliminate the excesses on your 2025 Forms 5329. (Don't confuse the IRA custodian by requesting this distribution be done by a return of contribution. IRA custodian's often somehow mistakenly process the distribution as a return of contribution before the due date of the tax return even when there has been no such contribution.)