Hello
I am currently working on filing my taxes for 2019, and I am having some frustrations with TurboTax due to how the Roth IRA excess contributions are being handled. I currently have the following situation:
During 2019, I realized that my AGI was too high to be eligible for Roth IRA contributions. However, at the time, I had already contributed $5,000 toward my Roth IRA. I called the brokerage house and had the amount (plus earnings) re-characterized to my Traditional IRA. I believe I have all the necessary information fr this entered into TurboTax.
However, after discovering I was not eligible, I realized that my Roth IRA contributions for the following were not allowed:
- 2018 - $5,499.96 - AGI too high
- 2016 - $5,500.00 - Married filing separately (Ohio uses a single tax table regardless of filing status, so you get severely penalized for being married with 2 incomes)
- 2015 - $5,500 - Married filing separately
Due to all of this, I contacted the brokerage house and had the contributions returned to me for a total of $16,500.19 in 3 separate payments during November 2019
Based on my understanding, I should owe the following penalties:
- 2018 - $5,499.96 * 6% * 1 year = $330
- 2016 - $5,500.00 * 6% * 3 years = 990
- 2015 - $5,500.00 * 6% * 4 years =$1,32
I entered the information fro my form 1099-R into TurboTax, but I must be doing something wrong because I do no get prompted for the tax years these apply to, and the fee is not being calculated on my Form 5329.
For Form 5329, I see the following populated in Part IV:
Line 18 - $16,500
Line 19 - $0
Line 20 - $16,500
Line 21 - $16,500
Line 22 - $0
Line 24 - $0
Line 25 - $0
If anyone has experience a similar issue in the past and can guide me, I would greatly appreciate the help.
