- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
2021: file an amended return, report the excess contribution on form 5329 and pay the 6% penalty
2022: file an amended return, report the ongoing excess on form 5329 and pay the 6% penalty
2023: file an amended return, report the ongoing excess on form 5329 and pay the 6% penalty
2024: file an amended return, report the ongoing excess on form 5329 and pay the 6% penalty
2025: It is too late to use the special procedure to remove excess plus earnings. You just have a regular withdrawal of whatever dollar amount. When you report that withdrawal, it will also go on form 5329 and clear the ongoing excess balance. The withdrawal itself follows the normal Roth IRA rules and it will not be taxed as long as the withdrawal is less than your combined historical contributions.