To solve this excess Roth contribution you made for tax year 2024, you need to do the following:
For tax year 2024: You need to amend your 2024 tax return to report the excess contribution on form 5329 and pay the 6% excise tax. This is because the excess contribute was not withdrawn before the due date of the 2024 tax return (April 15, 2025).
Please read this TurboTax Help topic on how to amend a prior-year tax return.
For tax year 2025: As the excess contribution remained in the account as of December 31, 2025, an excise tax of 6% is due for 2025. You have to file form 5329 for 2025. To avoid continuing to pay the excise tax of 6% in 2026, you need to withdraw the excess together with its related earnings before December 31, 2026.
For tax year 2026: You'll receive a form 1099-R with the total amount withdrawn (excess plus earnings) in box 1 and earnings in box 2a. The code in box 7 should be 8J. You'll enter that 1099-R in your 2026 tax return and the earnings will be taxed.
If there is a loss, that loss is not deductible.
[Edited 3/24/2026 | 1:16 PM PST
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