- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
Thank you, Rachel! I do have some follow-up questions if you are available. I put them in a new question, but here is what I wrote if you have the time:
2016: I contributed $6500 to my Roth IRA in February, 2017, for Tax Year 2016, which was an excess contribution which was withdrawn in January, 2018. I just received that 1099R in 2019. I have amended my 2016 return and reported the excess contributions and I am assuming I have to pay a 6% penalty on that contribution because it was not withdrawn by April, 2017. There are two 2016 5329's for my husband and myself with Lines 23 and 24 having $6500 each.
2017: I also contributed $6500 during the year of 2017, which was also reversed in January, 2018, and I am amending my 2017 return and reporting the withdrawn contributions and earnings and paying a 10% penalty on the earnings. My husband did the same but is over 591/2, and so no 10% penalty for him. Since I withdrew the 2016 $6500 before the tax filing in 2018, I am unsure if that goes on my amended 2017 taxes. I already have a distribution of $6500 for 2017 taxes on a different 1099R with earnings that I am putting there. Forms 5329 have $6500 on Lines 18, 20, and 21 in Part IV. Two Forms 8606 for my husband and me have $6500 on Lines 19, 21, and 22.
2018: I contributed $542 to my IRA Roth in January, 2018, but those were reversed later that month with the earnings. I reported the $6500 Distribution from January, 2018, on my 2018 Return which was the initial 2016 contribution. On the 5329, Lines 20 and 21 have $6500 each, and on the 8606, Lines 19 and 21 and 22 have $6500.
Question 1: am correct in Amending my 2016 taxes and paying the 6% penalty in that return for not withdrawing by April, 2017?
Question 2: do I pay a 6% penalty in the 2017 Return for the 2016 contribution even though it was withdrawn before the tax filing date of April, 2018?
Question 3: Are the 5329 and 8606 Forms for all three years filled out correctly to reflect all this?
Many thanks for your help and assistance!
2016: I contributed $6500 to my Roth IRA in February, 2017, for Tax Year 2016, which was an excess contribution which was withdrawn in January, 2018. I just received that 1099R in 2019. I have amended my 2016 return and reported the excess contributions and I am assuming I have to pay a 6% penalty on that contribution because it was not withdrawn by April, 2017. There are two 2016 5329's for my husband and myself with Lines 23 and 24 having $6500 each.
2017: I also contributed $6500 during the year of 2017, which was also reversed in January, 2018, and I am amending my 2017 return and reporting the withdrawn contributions and earnings and paying a 10% penalty on the earnings. My husband did the same but is over 591/2, and so no 10% penalty for him. Since I withdrew the 2016 $6500 before the tax filing in 2018, I am unsure if that goes on my amended 2017 taxes. I already have a distribution of $6500 for 2017 taxes on a different 1099R with earnings that I am putting there. Forms 5329 have $6500 on Lines 18, 20, and 21 in Part IV. Two Forms 8606 for my husband and me have $6500 on Lines 19, 21, and 22.
2018: I contributed $542 to my IRA Roth in January, 2018, but those were reversed later that month with the earnings. I reported the $6500 Distribution from January, 2018, on my 2018 Return which was the initial 2016 contribution. On the 5329, Lines 20 and 21 have $6500 each, and on the 8606, Lines 19 and 21 and 22 have $6500.
Question 1: am correct in Amending my 2016 taxes and paying the 6% penalty in that return for not withdrawing by April, 2017?
Question 2: do I pay a 6% penalty in the 2017 Return for the 2016 contribution even though it was withdrawn before the tax filing date of April, 2018?
Question 3: Are the 5329 and 8606 Forms for all three years filled out correctly to reflect all this?
Many thanks for your help and assistance!
‎June 4, 2019
9:57 PM