turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I completed my tax returns on 04/24/21. I got a message saying I had a penalty due to excess Roth IRA contribution. This is inaccurate and needs to be corrected. How?

I didn't overcontribute, the confusion is due to a CONVERSION from a different retirement account.  I did not exceed the limit.  I spoke to my financial advisor about this.  The taxes have already been filed and I've received my refunds, but I do not want the penalty obviously.  How can I correct this?
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

I completed my tax returns on 04/24/21. I got a message saying I had a penalty due to excess Roth IRA contribution. This is inaccurate and needs to be corrected. How?

A message from whom exactly?  Did you incorrectly record it in the program as Contribution, rather than a Conversion?

I completed my tax returns on 04/24/21. I got a message saying I had a penalty due to excess Roth IRA contribution. This is inaccurate and needs to be corrected. How?


@sully101089 wrote:
I didn't overcontribute, the confusion is due to a CONVERSION from a different retirement account.  I did not exceed the limit.  I spoke to my financial advisor about this.  The taxes have already been filed and I've received my refunds, but I do not want the penalty obviously.  How can I correct this?

It would only be a contribution if you entered something in to the IRA Contribution interview.    If you did then remove it on an amended return.

 

A conversion is only entered in the 1099-R section and you say that you "moved" the money to another retirement account and converted it to a Roth.   That would put the taxable conversion amount on the 1040 line 4b unless you had a non-deductible basis in the IRA, then the taxable amount is calculated on a 8606 form.

**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.**
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies