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New Member
posted Apr 1, 2021 7:12:52 PM

For the past few years until recently, I've been confusing my Roth 401k through my employer with a Roth IRA and reporting an IRA on my taxes. How can I fix this?

For 2019, I only had $12 over the max contributions for an IRA which resulted in a penalty. This year is much higher. Is it fine to simply just not report Roth IRA on my 2020 tax filing? Or do I need to retroactively adjust my previous year filings?

0 3 530
3 Replies
Level 15
Apr 2, 2021 5:44:52 AM

You should file a corrected 2019 Form 5329 along with Form 1040-X primarily to correct the $12 of excess that otherwise carries forward to line 18 your 2020 Form 5329.  With this amendment you can also claim a refund of the $1 penalty paid unnecessarily.  (On the Form 1040-X you can choose to credit the $1 refund toward your 2020 tax liability).

New Member
Apr 3, 2021 10:15:16 AM

Thank you! And also, for filing form 1040-X, what box should I fill out to correct the invalid $12 of excess contributions?

Level 15
Apr 3, 2021 10:29:35 AM

Line 10 of Form 1040-X, Other taxes, will show a change of negative $1 due to eliminating the $1 penalty on Part IV of the amended 2019 Form 5329.  In the explanation that you provide with the Form 1040-X you will indicate that the correction is due to having previously reported on Part IV of Form 5329 a $12 excess Roth IRA contribution that was not actually made.