DianeC958
Expert Alumni

Retirement tax questions

You will need first to amend your 2018 tax return to indicate that you overcontributed to the Roth IRA.  When you do this the program will prepare a form 8606 as part of your return showing the overcontribution.

 

You will need to carry this information to your 2019 return and also have the form 8606 showing the overcontribution amounts.

 

Then you need to withdraw the excess contributions and turn the money into Back Door Roth IRA's to have the tax benefits when you retire.

 

Then in 2020 when you receive the 1099-Rs for the withdrawals the form 8606 helps to show the IRS that the withdrawals are not taxable or to subject to the 10% penalty for early withdrawal.

 

Link to how to amend prior years' tax returns in TurboTax.

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