dmertz
Level 15

Retirement tax questions

You have discovered the difficulty in determining the amount required to be returned when you are in the phase-out range of the Roth IRA contribution limit.  So yes, you indeed have excess contributions of $7 and $13 (I assume for you and your spouse since to indicated two separate amounts) still subject to penalty on your 2018 tax return and carried into 2019.

 

You'll need to make sure that 2019 TurboTax shows the $7 and $13 excess contributions carried into 2019 and not some other amount.  If either of you is able to apply the $7 or $13 excess as part of the particular individual's 2019 Roth IRA contribution, that will eliminate the excess for 2019.  Otherwise you'll each have 6% excess contribution penalties on the $7 and $13 again for 2019.  (The penalty on $7 rounds to $0 and the penalty on $13 rounds to $1.)  With the $7 and $13 penalties carried into 2020, you'll either have to apply these as part of your 2020 Roth IRA contributions or obtain regular distributions of $7 and $13, respectively to eliminate the excess for 2020.