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New Member
posted May 20, 2021 10:26:11 AM

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?

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2 Replies
Level 15
May 20, 2021 10:37:50 AM

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

Level 15
May 20, 2021 10:41:18 AM

@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.