If 10 years ago I contributed too much to my ira and subsquesntly removed it, do I answer yes or no in turbotax to "Any excess IRA contributions prior to 2017?"

Even though the IRA basis was adjusted years ago, turbo tax asks every year and I am never sure what to answer since technically the answer is yes but because it was corrected shortly after there is no longer an issue.

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1 Best answer

Expert Alumni

Jun 1, 2019 10:26:52 AM

If you over-contributed to your IRA 10 years ago and have already withdrawn the over-contribtion, you can answer No to that TurboTax question.

The question is asked to make sure that any prior over-contribution has been withdrawn, and if not, TurboTax will calculate the excise tax at 6% of the over-contribution.

Expert Alumni

Jun 1, 2019 10:26:52 AM

If you over-contributed to your IRA 10 years ago and have already withdrawn the over-contribtion, you can answer No to that TurboTax question.

The question is asked to make sure that any prior over-contribution has been withdrawn, and if not, TurboTax will calculate the excise tax at 6% of the over-contribution.

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If 10 years ago I contributed too much to my ira and subsquesntly removed it, do I answer yes or no in turbotax to "Any excess IRA contributions prior to 2017?"