No, I would not expect a corrected W-2 for over-paying your IRA. However, you should receive a statement from Fidelity showing your correct contributions for the year. I would wait for that.
You have until the tax filing deadline (April 15th) to make your Roth IRA contributions for the prior year, it sounds like Fidelity is trying to correct your contributions before this deadline.
If it is not corrected, you could be penalized and be charged the 6% penalty if you contribute more than the allowed contribution amount of $6,000 ($7,000 if 50 or older) split between traditional IRA's and Roth IRA's.
To enter Roth IRA contributions in TurboTax:
- Federal Taxes,
- Deductions & Credits,
- Retirement & Investments,
- Traditional & Roth IRA contribution.
A Roth IRA contribution does not actually go on a tax return, but you should enter it anyway to:
1) Tell you if your income qualifies you for a contribution and warn you if it does not.
2) Check if your income exceeds the limit to contribute to a Roth.
3) Track your contribution year-to-year if you use TurboTax every year.
4) Add the Retirement Savers Credit if you qualify.
5) Track of your contributions through the years, and if you overpaid, or had pay back anything, it will keep track of it for you.
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