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Retirement tax questions
I overcontributed $2333 nondeductible in error in 2021 over the $7000 allowed , but I did not take a distribution until 2025. I took a distribution of $6000 in 2025. I did not file a 8606 form in any of the years 2021 through 2024. I have prepared form 5329 to file now for each of those years to pay the 6% penalty.
My question is how do I enter this in TurboTax desktop so that the $2333 in not taxed again? The taxable amount of the $6000 2025 distribution should be $3667 shouldn't it? Is form 8606 required (I have never filed it before but it shows in the carryover worksheet).
March 23, 2026
12:54 PM