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I was penalized $1200 for an overcontribution to a ROTH IRA. I have a ROTH 403-B.

I could contribute $20,500 + $6500 catchup. How do I fix it and get my $1200 back?
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1 Reply
dmertz
Level 15

I was penalized $1200 for an overcontribution to a ROTH IRA. I have a ROTH 403-B.

In TurboTax you mistakenly entered your Roth 403(b) contributions as Roth IRA contributions.  A 401(k) is not an IRA.

 

You must amend your tax return using TurboTax to produce a Form 1040-X, removing the mistaken Roth IRA contribution entry, and mail it along with a corrected From 5329 that you'll have to prepare outside of TurboTax.  The Form 1040-X will show that the correction has no effect on your tax return other than to remove the penalty for the excess Roth IRA contribution that you did not actually make, resulting in a refund of $1,200, and will provide your explanation for the correction.  Because TurboTax will not produce a corrected Form 5329 showing the necessary zeros, outside of TurboTax you'll need to prepare the corrected Form 5329 showing zeros in Part IV where you had originally reported the excess $20,000 contribution.

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