Spousal IRA Excess contribution.
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
bkg1
Level 2

Spousal IRA Excess contribution.

So, I have a spousal IRA which funded for year 2020 in Feb 2021. Realized immediately that I did a ROTH IRA contribution as well in late 2020. So initiated the Return of Excess contribution and got a letter explaining I will receive the 1099-R only in Jan 2022.

 

After some research I am understanding I can fill 1099-R myself. Box 1 = excess contribution + applicable earning ($2029.39). Box 2a = applicable earning ($29.39). Box 7 = 1 & 8. Check the checkbox "The IRA/SEP/Simple box is checked on my copy of 1099-R".

 

Some questions 

 

1. Am I getting this correct. 

2. Turbotax Premier Desktop is suggesting Form 4852, is that really needed?

3.. Do I need to fill 5329 myself and where is that option?

3 Replies
macuser_22
Level 15

Spousal IRA Excess contribution.


@bkg1 wrote:

So, I have a spousal IRA which funded for year 2020 in Feb 2021. Realized immediately that I did a ROTH IRA contribution as well in late 2020. So initiated the Return of Excess contribution and got a letter explaining I will receive the 1099-R only in Jan 2022.

 

After some research I am understanding I can fill 1099-R myself. Box 1 = excess contribution + applicable earning ($2029.39). Box 2a = applicable earning ($29.39). Box 7 = 1 & 8. Check the checkbox "The IRA/SEP/Simple box is checked on my copy of 1099-R".

 

Some questions 

 

1. Am I getting this correct. 

2. Turbotax Premier Desktop is suggesting Form 4852, is that really needed?

3.. Do I need to fill 5329 myself and where is that option?


No.  form 4852 is  "Substitute 1099-R" only used to correct an incorrect 10990R that the insurer refused to correct.   You have not even received a 1099-R so there is nothing to correct.

 

You said  "So, I have a spousal IRA which funded for year 2020 in Feb 2021. Realized immediately that I did a ROTH IRA contribution as well in late 2020"

 

What was returned?  A "spousal IRA can either be a Roth or a Traditional IRA" which was returned? - a Roth contribution or a Traditional IRA contribution and for which spouse?

 

**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.**
bkg1
Level 2

Spousal IRA Excess contribution.

Both ROTH and Trad IRA are on my wife's name the contributions added up to 8000. So I submitted ROE from Trad IRA for $2000.

 

My contributions are separate $4000 in ROTH. 

macuser_22
Level 15

Spousal IRA Excess contribution.


@bkg1 wrote:

Both ROTH and Trad IRA are on my wife's name the contributions added up to 8000. So I submitted ROE from Trad IRA for $2000.

 

My contributions are separate $4000 in ROTH. 


A return of Traditional IRA contributions made in 2020 for 2020 should have a code 8 (and 1 if under age 59 1/2) in box 7, the total returned amount in box 1 and the earnings in box 2a  and the IRA/SEP.SIMPLE box checked.

 

If you know those amounts you can file it now and avoid amending when the real 1099-R comes.

 

 

**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.**
Dynamic AdsDynamic Ads
v
Privacy Settings