I just realized that I have over-contributed my Roth IRA in 2016 by a couple hundred dollars. How do I report it in 2018 tax return? (I was single in 2016 but now file jointly with my spouse.) I have looked into 5329 form but it only covers the overcontribution of the current tax year. In addition to the two 6% penalty, will I need to pay income tax based on that?
You'll need to sign in or create an account to connect with an expert.
You must file 2016 Form 5329 to report and pay the 6% penalty on the excess for 2016. If you are not able to apply that excess as a Roth IRA contribution for 2017, you must do the same for 2017. If the entire excess could not be applied as a 2017 contribution (eliminating the excess in 2017), 2018 TurboTax will prepare 2018 Form 5329 for this excess carried into 2018 and include it with your 2018 tax return.
If the excess could not be applied as a 2017 or 2018 contribution, the excess carries into 2019. If you cannot apply this excess as a 2019 contribution you must obtain a regular distribution equal to the amount of the excess (with no adjustment for investment gain or loss) before the end of 2019. That will eliminate this excess for 2019 and beyond.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
dhairston
Returning Member
wchowe
Level 2
wchowe
Level 2
mkjtacassidy
New Member
MJM10
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.