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I put an excess contribution for an IRA in 2020 not realizing it was already on my W2. I've amended 2020, but the excess contribution is giving me a 6% penalty. Fix?

 
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FangxiaL
Expert Alumni

I put an excess contribution for an IRA in 2020 not realizing it was already on my W2. I've amended 2020, but the excess contribution is giving me a 6% penalty. Fix?

Your IRA contribution won't show up on your W-2 form. If you have a retirement plan on your job such as a 401(k) plan, the contribution to the 401(k) plan was not included on your W-2 form (not reported in Box 1 taxable wages). If you did not set up a separate IRA account, you don't enter any information in the IRA section. When you amended your 2020 tax return, remove all the entries in the IRA section you reported last, the excess contribution penalty should resolve by itself. The amended return should have resolved the issue. 

You can clarify: did you contribute to your IRA account for tax year 2020?

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