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IRA

We usually deposit IRA when filing taxes.

When we did 2019 taxes, we deposit IRA  $2500 and $5000 on 02/28/2020, and we filing 2019 taxes on 03/24/2020.

This year, we filing 2020 taxes without deposit IRA on Feb 17 2021.

After we filing taxes, we go to travel  and we received  2020 tax refund during travel.

When I came back to USA on Aug.1th, there were letters from bank , and the letters are Form 5498  said the $2500 and $5000 are IRA contributions for 2020.

I asked bank , and they said the IRA deposit document wrote "current year"=2020.

Please tell me how can I fix this ?

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5 Replies

IRA

You would have to discuss that with your bank. 

IRA

 

Bsch 4477:

What can I discuss with the bank?

They said they can not do anything.

IRA

Only the bank can change the date of contribution. TurboTax can’t help. 

IRA

The only correction is that you  can do is  amend the 2019 return to remove the 2019 contributions   that were not made correctly   and amend the 2020 return to add the contributions  if it is too late for the bank to make the tax year  correction (which I doubt they can). 

IRA

The question I would ask is, can you prove that you requested the $2500 deposit to be for tax year 2019?  Do you have a receipt or other proof that this was supposed to be a 2019 deposit?

 

If you can prove this was supposed to be a 2019 contribution, and it is the bank's error to record it for 2020, then I think you have a good argument that the bank should correct it.  If they refuse, I would escalate to a higher employee level.  You can also complain to the bank's regulator.  (It might be the state banking department if this is a bank, or it might be the SEC if this is a brokerage.)   If in the end, the bank won't correct its mistake, I suppose your last recourse is to move your IRA to a different bank.

 

If this was your mistake, and you forgot to select "2019" as the tax year for the contribution, that's on you and there is nothing to be done.  You need to amend your tax return for 2019 and pay the penalties.  It is too late (in 2021) to remove an excess contribution for 2020.

 

And in the future, you probably should check your contribution record at the IRA after the deposits are reconciled (a week or so) to make sure they are recorded in the way you expected. 

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