ReneV4
Employee Tax Expert

Retirement tax questions

Yes. You do need to do something special, in that your 2024 tax return may need to be amended if the Roth contribution was not entered and no Form 5329 was generated. 

 

If you do not see a penalty amount in your 2024 Form 1040, Schedule 2, then an amendment is required. 

 

The reason for this is that your removal of excess transaction, which took place in November of 2025 missed the window wherein you could correct the excess contribution (October 2025).

 

Because that window was missed, amending your 2024 will then make it possible to correctly reflect what took place with this excess contribution on your 2025 tax return.

 

Here is a link to where to find the 2024 TurboTax software if you did not use TurboTax for your 2024 filing. Note that if you used TurboTax to complete your 2024 return, amending it will be free. Here is a link if that is the case: How do I amend my federal tax return for a prior year?

 

When you work on your 2024 return, you will go to your IRA Contributions section (Deductions & Credits) to enter this contribution, which will then be flagged as an excess contribution due to your not having earned income to report.

 

During the amendment process, when asked if you withdrew the money, you will answer "No", since you did not. This will trigger Form 5329 for your 2024 return.

 

Once you have amended your 2024 return, you can then work on your 2025 return with the correct information.

 

In your 2025 return, when entering the 1099-R, answer "Yes" when asked if this was a return of ecxess contributions. TurboTax will then generate Form 5329 that shows the money being distributed, which will zero out the balance and stop the recurring penalties.

 

[Edited 02/10/2026 | 4:20 pm PST] @Peasquare

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