Excessive Roth Contribution

Forum|Forum|6 years ago
March 3, 2020
1 reply
13 views

I contributed $6000 to my Roth for 2019. I have a MAGI of 193,200, which puts me over the threshold for eligibility for Roth contributions.

By my calculations, I need to return $120, plus the earnings, and report the earnings as income.

But if the earnings are income, doesn't that affect my MAGI again? And wouldn't that further affect my Roth eligibility? How is this untangled? I don't see in the IRS instructions where it says not to include retirement distributions in MAGI.

Not A Product Question

Best answer by dmertz

SusanY1 incorrectly indicated that the earnings are taxable in 2020. The 2020 Form 1099-R will have codes J and P indicating that the earnings are taxable on your 2019 tax return.

SusanY1

Level 15

Since you will be withdrawing the excess plus earnings in 2020, the earnings will become income to you for 2020.

Your financial institution will provide you with Form 1099-R next year that will code the return of the excess as a 2019 event and the earnings as income for 2020.

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