I've completed tax filing but realized that I contributed too much at my Roth iRA so I returned excess contribution (both principal and gain). Any amendment tax needed?

[hsin7959]

but the bank told me that they will not provide form 4598 until May so not sure do i need to amend the tax filing that I've done?

[RayW7]

You will not receive a 1099-R right away for the withdrawal of the 20120 excess contribution.  You will get a 2021 1099-R sometime in early 2021 reporting the removal of the excess contribution and any associated earnings. 

You will need to amend your 2020 tax return at that time if there are earnings on that 2020 excess contribution.

Or, you can just report the 1099-R information on your 2021 return and pay the penalty if you do not want to amend your 2020 return.

[hsin7959]

Hi Ray, 

Thanks for your kind response. So my gain of $300 earned was on early March this year, so per your description, I better amend the 2020 tax return by deadline Apr 15 this year? Or I can wait until I get the form 4598 in May then amend the tax before Oct this year? Thank you. 

[RayW7]

You can wait until, no later than October 15,

The deadline for making the transfer to the second IRA is the due date (excluding extensions) for the tax return for the year for which the contribution to the first IRA was made. This means that any IRA contribution made for the year 2020 must be recharacterized no later than October 15, 2021, the deadline (including the six-month extension) for filing 2020 federal income tax returns.

[hsin7959]

Cool, thank you again Ray. I will wait for the form 4598 and then file the tax amendment in June 2021 (before Oct 15,2021). Thanks!

[hsin7959]

Hi Ray or other experts,

I've received the form 5498 for year 2020. Box 5 shows $6,026.00 while box 7 shows Roth IRA and box 10 shows $6,000, other boxes are empty. In this case, does it mean that I should log in to turbotax and amend the tax filing? Is there any place for me to amend it online or? Thank you!

[hsin7959]

Hello experts, any insights? Thank you!

[macuser_22]

A 5498 is information  only and does not go on a tax return.     You need the 1099-R to report it.    If returned in 2021 then you should get the 1099-R next January.    If you requested a "return of contribution" then the 1099-R should have a code JP in box 7 and will require amending your 2020 tax return.    Only the 1099-R box 2 amount (if any) will be taxable.

[hsin7959]

Hello,

I don't receive 1099-R. Is this something I need to request the bank to sent to me?

I transferred the money (6000 capital + gains) from my ROTH IRA to regular checking account in May 2021, but per your request, I will not receive a 1099-R until January 2022? 

However, another expert above mentioned that I should amend the tax filing before Oct 2021 to avoid penalty. Could you please kindly suggest? Thank you!

[DoninGA]

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@hsin7959 wrote:

Hello,

I don't receive 1099-R. Is this something I need to request the bank to sent to me?

I transferred the money (6000 capital + gains) from my ROTH IRA to regular checking account in May 2021, but per your request, I will not receive a 1099-R until January 2022? 

However, another expert above mentioned that I should amend the tax filing before Oct 2021 to avoid penalty. Could you please kindly suggest? Thank you!

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A distribution from your Roth account made in 2021 would only be entered on a 2021 tax return to be filed next year.  It is Not entered on a 2020 tax return.

[DoninGA]

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@DoninGA wrote:

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@hsin7959 wrote:

Hello,

I don't receive 1099-R. Is this something I need to request the bank to sent to me?

I transferred the money (6000 capital + gains) from my ROTH IRA to regular checking account in May 2021, but per your request, I will not receive a 1099-R until January 2022? 

However, another expert above mentioned that I should amend the tax filing before Oct 2021 to avoid penalty. Could you please kindly suggest? Thank you!

---

A distribution from your Roth account made in 2021 would only be entered on a 2021 tax return to be filed next year.  It is Not entered on a 2020 tax return.

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Since this was a return of contributions then follow the instructions given by @RayW7 at the top of this thread.