Forgot to report ROTH IRA contributions

[pearl12970]

I am working on my 2018 taxes and just realized I have overlooked reporting my ROTH IRA contributions for 2015, 2016 and 2017. Since contributions to a Roth IRA aren't deductible, do I still need to report the contributions on my tax return? If so, how do I report it to IRS now? Thank you in advance.

[macuser_22]

A Roth IRA contribution does not actually go on a tax return, but you should enter it anyway to:

1) Tell you if your income qualifies you for a contribution and warn you if it does not.
2) Check if your income exceeds the limit to contribute to a Roth.
3) Track your contribution year-to-year if you use TurboTax every year.
4) Add the Retirement Savers Credit if you qualify.

[pearl12970]

Thank you. Since I forgot to report my ROTH IRA contributions for 2015, 2016 and 2017, how do I do it now?

[Hal_Al]

You do not need to report your 2015, 2016 and 2017 contributions, at all**. Furthermore, there is no way to do it, even if you wanted to

If your income  does not qualify you for a contribution or if your income exceeds the limit to contribute to a Roth, you need to contact your account administrator to undo the contributions (and then report the excess contributions on your 2019 return)

If you want TurboTax to track your contributions, going forward, buy the download software for 2019 (don't use on-line) and make the past year entries on the IRA contributions worksheet.

**If you want to claim the Retirement Savers Credit (it's a low income credit, most people don't qualify), you will have to file amended returns for those years.  To see if you qualify, review the chart on form 8880 (https://www.irs.gov/pub/irs-pdf/f8880.pdf). Line 8 on the form is your Adjusted Gross Income (AGI).

[pearl12970]

Thanks Hal_Al,

This answers my question. You also addressed my next question about Savers credit before I asked it 🙂

Glad I don't need to go through the hassle of  making any changes to my previous years tax returns.

One more question : Is there any advantage to letting TurboTax track my Roth IRA Basis ? 

[dmertz · Accepted solution]

Based on your reply it seems that you were not eligible for the Retirement Savings Contributions Credit, but if you were, it's likely too late to amend to claim the credit for 2015.  However, 2016 and later years are still open for amendment to claim a refund.

You and TurboTax will need to know your basis in Roth IRA contributions if you ever make a nonqualified distribution from your Roth IRAs.  Allowing TurboTax to track your basis now makes sure that that information is available if it's ever needed.  You can make the correction to your Roth IRA contribution basis in 2019 TurboTax when you prepare your 2019 tax return, no need to do pro forma amendments to 2015 through 2018 to get that information into TurboTax.

[SHENRIKS]

HI-

Should I wait until I have deposited my 2019 ROTH contribution before finalizing my 2019 taxes.    I did not see any place to enter the information when I was entering my data for taxes.   Please advise . Thanks!

[macuser_22]

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@SHENRIKS wrote:

HI-

Should I wait until I have deposited my 2019 ROTH contribution before finalizing my 2019 taxes.    I did not see any place to enter the information when I was entering my data for taxes.   Please advise . Thanks!

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That is up to you but it is advisable.

Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.

A Roth IRA contribution does not actually go on a tax return, but you should enter it anyway to:

1) Tell you if your income qualifies you for a contribution and warn you if it does not.
2) Check if your income exceeds the limit to contribute to a Roth.
3) Track your contribution year-to-year if you use TurboTax every year.
4) Add the Retirement Savers Credit if you qualify.