dmertz
Level 15

Retirement tax questions

Because your excess contribution was made for 2018, VictorW9's answer is incorrect.  That answer is only correct for an excess contribution made for 2019.

 

Because the excess was not corrected in 2019, unless you are eligible to apply the excess as part of a 2019 Roth IRA contribution, you owe another 6% penalty for 2019 and, if you are not eligible to apply it as part of your 2020 Roth IRA contribution, you must obtain a regular distribution of exactly the amount of the excess, with no adjustment for gain or loss, before the end of 2020, otherwise you'll own another 6% penalty for 2020..