Solved: Form 5329t - error in turbotax - duplicates prior year penalties for roth ira overpayment in perpituity
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Form 5329t - error in turbotax - duplicates prior year penalties for roth ira overpayment in perpituity

My wife paid a one time penalty for an over funded roth ira in 2013 using Form 5329 T. Everything was fixed and not over funded again. In every subsequent year turbotax duplicates the exact same one time penalty and adds it to Other Taxes without ever asking about roth ira over funding. Turbotax never zeros out Form 5329T even when you tell it there is no IRA over funding. Therefore, she continued to pay the same penalty year after year. Further, there is no way to fix the error without hard coding the forms. This appears to be a turbotax error. Can you confirm?
1 Best answer

Accepted Solutions
Level 15

Form 5329t - error in turbotax - duplicates prior year penalties for roth ira overpayment in perpituity

Go to the IRA contribution section. Click on the Roth check box for your spouse.  Answer yes you have a contribution.  Do not enter an amount on the contribution page and clock through until the excess contribution screen shows up.  It should auto-populate with the amount of the excess.  Enter 0 (zero) and continue to the end of the interview.  That should remove the excess and penalty.

You can amend the last 3 years for a refund if you have been paying the penalty in error.

Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR  Use the "Tools" menu  (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.

**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.**

View solution in original post

1 Reply
Level 15

Form 5329t - error in turbotax - duplicates prior year penalties for roth ira overpayment in perpituity

Go to the IRA contribution section. Click on the Roth check box for your spouse.  Answer yes you have a contribution.  Do not enter an amount on the contribution page and clock through until the excess contribution screen shows up.  It should auto-populate with the amount of the excess.  Enter 0 (zero) and continue to the end of the interview.  That should remove the excess and penalty.

You can amend the last 3 years for a refund if you have been paying the penalty in error.

Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR  Use the "Tools" menu  (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.

**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.**

View solution in original post

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