Amend 2020, 2021 for Roth over contribution

[mgd1770]

I just realized I made Roth IRA over contributions in 2020 and 2021.  I actually wasn't eligible to make any contributions due to the income limits.  I know I need to amend my 2020 and 2021 returns to report this.  Both were filed using TurboTax online.  My questions are:

1) How do I amend these returns in TurboTax to report the excess contribution?

2) Can these amended returns be be e-filed?

3) Is there a TurboTax solution (Live Assisted or Live Full Service) that can walk me through this if I still have questions?  

[DanaB27]

1) You will need to enter the Roth contributions on your 2020 and 2021 tax returns under IRA contributions and TurboTax will automatically calculate the 6% penalty on Form  5329.

On your 2020 amendment:

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. Enter your 2020 Roth contribution and continue through the interview.

On your 2021 amendment:

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. Enter your 2021 Roth contribution
5. On the "Do you have any Excess Roth Contributions" answer "Yes"
6. On the "Enter Excess Contributions" screen enter the total excess contribution from 2020 (if it wasn't carried over).

You will also have to pay the penalty on your 2022 tax return if you haven't removed the excess contribution by December 31, 2022:

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. On the "Do you have any Excess Roth Contributions" answer "Yes"
5. On the "Enter Excess Contributions" screen enter the total excess contribution from 2020 and 2021 (if it wasn't carried over).

You can avoid the 6% penalty by making a regular distribution of the 2020 and 2021 excess contributions by December 31, 2023. You can leave the earnings in the IRA since you remove the excess after the due date. Please see What happens if I made an excess Roth IRA contribution for additional information.

2) No, the 2020 and 2021 amended returns need to be printed and mailed. Follow these instructions to amend a prior-year return.

3) Only tax returns filed with Full Service can be amended with Full Service. Please see What is TurboTax Live Full Service? for more details.