Do I need to file amendment for excess Roth IRA contribution?

Forum|Forum|5 years ago
March 17, 2021
4 replies
33 views

I made an excess Roth contribution of $7000 in October 2019. I withdrew it plus the earnings (total $7008.94) in March 2020 before I filed my 2019 taxes. When I filed my 2019 taxes I did not enter any info regarding the IRA contribution and withdrawal.

This year I received a 2020 1099-R showing a Gross Distribution of $7008.94 with codes “J” and “P”. Box 2a is zero.

Since I have no taxable amount, is it necessary to file an amended 2019 return? I’m not going to owe any more taxes. I’m over 60 so there is no penalty.

If I do have to amend the 2019 return, what forms or info do I have to fill in?

DanaB27

Employee Tax Expert

Yes, you will have to report the 1099-R on your tax return. Please see How do I amend a 2019 return in TurboTax?

You will enter the 1099-R into TurboTax.

I agree with dmertz that you need to request a corrected 1099-R with 8.94 in box 2a.

[Edited 3/17/2021 | 1:48pm PST]

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dmertz

Level 15

cyama369, your Form 1099-R has been prepared incorrectly. Box 2a should show $8.94.

Technically, the $8.94 of earnings is required to be included in income on line 4b of your 2019 tax return and, if you are under age 59½, on line 1 of Form 5329. You would need to amend your 2019 tax return to add those to do that. The $9 error in your reported income is unlikely to change your tax liability and the early-distribution penalty would be only $1, so, if you fail to amend, this might be considered by the IRS to be just a de minimis error on your 2019 tax return.

On your Form 1099-R, is box 2b Taxable amount not determined marked?

If so, did the IRA custodian do the earnings calculation?