Tax Year Prior to 2020: Excess 2019 Roth IRA Contribution

Forum|Forum|6 years ago
March 11, 2020
2 replies
24 views

I filed my 2019 return. Then I realized I made a contribution in January 2019 to my Roth IRA that is not allowed (I retired). I had it reversed and learned I have earnings that will bump my tax liability by about $100. I am over 60 so I don't have an early withdrawal penalty.

Is it better to wait until I receive the 1099-R in 2021 or is it better to file an amended return now based on the earnings reported? If I amend now (before April 15), do I create a substitute 1099-R since one hasn't been issued? If I wait until 2021, will the only downside be that I will have to pay interest on the tax underpayment of $100?

VictorW9

Level 7

It's your choice. Either way, it is not going to have any impact in your tax situation. You can amend by creating a substitute 1099-R with the earnings taxable now as entered in box 1 and box 2.

Otherwise you have the option to wait and take care of it when you received your 1099-R next year. You may want to choose the option that is administratively convenient for you.

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