I removed an excess Roth IRA contribution I made for 2022 & Removed it as an excess contribution in Nov. 2024....

[keeponjeepin]

Ok , I made a contribution to my Roth IRA for 2022 , of $700. That I was not supposed to make, as I did not have enough income on a W2 , or 1099 misc. for that year. I am over 59.5 years old ,( now 62 yrs.) & have had the Roth for more than 5 years.  In November of 2024, I removed this excess contribution. My broker sent me

a 2024 1099 R , with the gross distribution box 1 = $700.  they probably would not calculate any earnings, because too much time had gone by.... In box 7 there is a Q -for a "qualified distribution." 

From what I have been reading, because of my age & the age of the Roth account I am allowed to take money out.  So my question is : Do I need to file an amended tax return for 2022 , or not ?

[dmertz · Accepted solution]

Your 2022 and 2023 tax returns needed to show the excess contribution on Form 5329 Part IV and the 6% excess-contribution penalty needed to be paid for each of those years.  If your 2023 and 2023 tax returns have Form 5329 prepared properly, there is nothing to amend.  Otherwise, you must amend those tax returns to include the Forms 5329 and pay the penalties.

The excess $700 should have carried forward to your 2024 Form 5329 line 18 and the distribution will then be on line 20 to be subtracted from the excess, with line 24 showing $0.

[keeponjeepin]

Hello,all right. ... I have reviewed my 2022 & 2023 form 5329 . I had done as you listed, for section IV, and paid the 6% penalty. So that is looking good. But on my 2024- 5329 ,that was generated with the software, you said: The excess $700 should have carried forward to your 2024 Form 5329 line 18 and the distribution will then be on line 20 to be subtracted from the excess, with line 24 showing $0.

For 2024 I contributed a bit less than the maximun allowable contribution into my Roth equaling = $470.

What was generated is a 5329 : for some reason... LINE 18 = 542

                                                                                           LINE 19= 20

                                                                                            LINE 21 = 20

                                                                                            LINE 24= 522

                                                                               LINE 25= 31   (additional tax)

So any way That is how it all came together,

any additional thoughts would be appreciated.

[keeponjeepin]

Any follow up would really be appreciated ...Thank You

[RobertB4444]

Line 20 should have shown a distribution.  You need to enter in the distribution that you took for 2024 so it will zero out all this excess and you won't pay a penalty.  Have you entered the $700 distribution that you took?

@keeponjeepin