All Posts

You can amend your prior year returns with TurboTax, but Form 5329 is actually a stand alone form and can be filled out and mailed in for 2022, 2023 and 2024 avoiding the need to amend.    For 2025, you have until the April 15, 2026 deadline to do a Return of Excess for any 2025 contributions. You must withdraw the Contribution + Earnings to avoid the 6% penalty for 2025 entirely. You only pay income tax on the earnings (reported on your 2025 return).   For 2022–2024, you have missed the deadline to avoid the 6% penalty for those years. You should not withdraw the earnings for these years. You only need to withdraw the flat contribution amount for that year as a regular distribution.   Since the 6% penalty is already "locked in" for those past years, removing the principal now stops the penalty from repeating in 2026 and beyond. There is no tax or penalty on the withdrawal itself because you are just taking out your own basis.   The 6% penalty is cumulative. For instance if you contributed $6,000 in 2022 and didn't fix it, you owe $360 for 2022, another $360 for 2023, and another $360 for 2024.   You can file Form 5329 as a standalone form. The IRS actually considers Form 5329 to be a "separate return" from your Form 1040.   If your only mistake was the Roth contribution and you have no other changes to your income or deductions for 2022–2024, filing the standalone 5329 is often the "cleaner" and faster path than a 1040-X amendment. But if you want TurboTax to "do the math" for you can certainly do an amendment.   Since you are fixing three years, you will need to handle each one individually. You need to use the specific version of Form 5329 for each year (e.g., the 2022 form for the 2022 penalty). You cannot use a 2025 form to report 2022 taxes. Unlike many other tax schedules, Form 5329 has its own signature and date block on page 2. This is what allows it to live as a standalone document. You should enclose a check or pay via IRS Direct Pay. If paying online, make sure you select the correct year and designate the payment for "Form 5329." Standalone 5329s cannot be e-filed. You must print, sign, and mail them to the IRS service center for your state (the same address where you’d mail a paper 1040).   Because these forms are technically "late," the IRS may eventually send you a bill for Failure to File (Form 5329). Since this is a separate return, there is a penalty for not filing it on time. Interest will accrue on the 6% penalty from the original due date of each return (April 2023, 2024, and 2025). I wouldn't worry about that for now. If the IRS wants to charge you a penalty and interest, you can let them bill you. If the IRS sends you a bill for a "Failure to File" penalty, you can often get it waived by calling and asking for "First-Time Abatement". Note that interest can almost never be waived.