dmertz
Level 15

Retirement tax questions

DianeC958's answers do not apply to your situation.  They only apply to a return before October 15, 2019 of a contribution made for 2018.

 

The distribution of your 2018 excess contribution will be reported on a code J 2020 Form 1099-R.  You'll enter this into 2020 TurboTax next year to eliminate the 6% excess contribution penalty for 2020 and beyond.

 

No, you can't avoid the penalty for 2019, because you did not correct the excess for 2018 before the end of 2019.  In addition to the 6%  penalty you have on your 2018 Form 5329, you have another 6% penalty for that amount on your 2019 Form 5329.