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Filing Question - Excess Contribution to Roth IRA

In 2018, I contributed $500 a month to my Roth IRA for 6 months - July through December.  I realized that we exceeded the income limit when we started working on our taxes in 2019 so withdrew the $3000 I had contributed (prior to filing).  No one mentioned anything about the earnings so I didn't think about it until I received my 2019 1099-R  with J in Box 7.  I really don't think I have any earnings because the market was down during that time but I'm not even sure how to calculate it since it was 6 separate contributions to my Roth IRA.  I used an accountant to do my taxes in 2018 instead of using TurboTax (won't do that again).  Do I need to go back to the accountant to amend my 2018 return or do nothing since I removed the excess contribution prior to filing taxes.  If I can amend on my own, what form do I need to use?  

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1 Reply
KarenJ2
Expert Alumni

Filing Question - Excess Contribution to Roth IRA

Your IRA custodian should be doing the attributable-earnings calculation for you when you explicitly request a return of contribution form your Roth IRA before the due date of your tax return.  

 

You do not need to amend your 2018 return.  You will enter the excess Roth 1099-R this year on your 2019 earnings.  The codes in Box 7 will correctly report it so you only pay tax on the earnings.  The earnings should be in box 2a.

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