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Retirement tax questions
To clarify, these were contributions to the Roth IRA, not your work retirement account?
If you can make the full Roth IRA contribution then you can apply the some of the excess towards 2024.
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- On the "Do you have any Excess Roth Contributions" answer "Yes"
- On the "Enter Excess Contributions" screen enter the total excess contribution from 2020-2023
- On the "How Much Excess to 2023?" screen apply part of the excess to 2024.
You need to take a regular distribution $51,772 (without earnings) to remove the rest of the 2020-2023 excess. You will get a 2025 Form 1099-R with code J (if under 59 1/2). When you enter it next year on your 2025 return the excess will resolve.
On your 2020 Form 5329 you will pay 6% on the 2020 excess ($13,500).
On your 2021 return you will pay 6% on the 2020 and 2021 excess ($27,000).
On your 2022 return you will pay 6% on the 2020, 2021, and 2022 excess ($40,500).
On your 2023 return you will pay 6% on the 2020, 2021, 2022 and 2023 excess ($53,000).
On your 2024 return you will pay 6% on the 2020, 2021, 2022 and 2023 excess minus the amount you can apply towards 2024 ($51,772).
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