reporting of excess ROTH contribution from 2015

Forum|Forum|5 years ago
May 17, 2021
1 reply
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I made an excess contribution to ROTH IRA in 2015 . In April of 2016 I withdrew the excess of $2420. I received 1099 in 2016 for the distribution. I did not file form 5329 for 2015 or subsequent years and have been assessed penalty each year. Do I correct this by filing 5329 with my 2020 return? Or do I go back and file amended 2015 and 5329? Do I also need to amend 2016 through 2019 returns also?

DanaB27

Level 15

To clarify, you withdrew the excess contribution plus earnings before the due date of your 2015 return (April 2016)? Then you do not owe a penalty for the excess contribution because you withdrew it in time. You do not need to file Form 5329.

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bagsformomAuthor

Level 2

the excess funds have transaction date of 4/18/16. But I didnt file 5329 form. In all years since then, I have been assessed penalty. I did receive a 1099-R form in 2016 for the distribution from the IRA (not 59 1/2 yet).

macuser_22

Alumni - Champ

Apparently after you timely removed the excess you failed to tell TurboTax in the IRA contribution interview that it was removed so it carried forward as an excess for each year. If still there then go to the contribution interview and click through to you get to the prior years excess and show that it has been removed and is zero.

If you had a 5329 form for 2017 - 2019 with a 6% penalty for each year then you can amend for those years and get a refund of the penalty paid. (Note for 2017 the amended return must be postmarked before midnight today or it will be to late for a refund.)

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**