Correct Roth overfunding

Forum|Forum|5 years ago
March 3, 2021
1 reply
13 views

I erroneously overfunded my Roth by $7K on Jan 13, 2020 and then withdrew the $7K on Jan 21, 2020. Schwab issued a 1099R with an 8J distribution code. Is this correct? Is a 5329 even required in this instance? TT says there is no extra tax to pay because I took no withdrawals from a retirement account before retirement age.

Not A Product Question

macuser_22

Alumni - Champ

@Russell23 wrote:

I erroneously overfunded my Roth by $7K on Jan 13, 2020 and then withdrew the $7K on Jan 21, 2020. Schwab issued a 1099R with an 8J distribution code. Is this correct? Is a 5329 even required in this instance? TT says there is no extra tax to pay because I took no withdrawals from a retirement account before retirement age.

There should not be 5329. Be sure to delete the contribution if you entered it in the IRA contribution interview.

Only the gains (if any) in box 2a are taxable.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**