Untimely Roth IRA Excess Contribution Help

Tax039494 — Tue, 14 Apr 2026 22:04:36 GMT

I just realized that in I contributed $6,500 to my Roth IRA and $3,000 to my traditional IRA in the 2023 tax year. I am now trying to fix this and would like some help making sure I am doing this correctly.

Even if I contributed to the Roth IRA in June 2023 and the traditional IRA in April 2024 (towards the 2023 tax year), I am supposed to remove the$3,000 from my Roth IRA according to the IRS rules?

Step I am taking:
1. It is an untimely excess contribution so I request a distribution of the $3,000 from my Roth IRA which will trigger a 1099-r with code J for the 2026 tax year.
2. I file a form 5329 for tax year 2023, 2024, and 2025. Can this be a standalone form mailed in or do I need to amend the tax returns?
3. The 5329 form will require a tax penalty of 6% each tax year so I pay the IRS $180 for 2023, $180 for 2024, and $180 for 2025
4. I expect a 1099-r with code J for 2026 tax year and once I report this form on my 2026 tax return everything is resolved.

Are these steps correct or am I missing anything?

And also any earning from the excess contributions are irrelevant in that I can just leave it in the Roth IRA and don’t need to calculate or report it anywhere because it was an untimely excess contribution, is that right?

Re: Untimely Roth IRA Excess Contribution Help

DianeW777 — Thu, 16 Apr 2026 14:09:40 GMT

The answers to your questions are listed below.

Yes, however it must include the earnings on the excess contribution as well.
1. You should see code J
Yes, the penalty will apply to all three years the excess remained in the Roth IRA. Tax year 2026 will not have the penalty but will be taxed on the earnings portion.
Yes, each year must have Form 5329 and the penalty will be due for each tax year. Interest and penalty will apply for each day the payment is late. It's possible to request relief from the underpayment penalty. Use Form 843 after payment, it never hurts to try and success can happen.
Yes, as indicated you will receive a 1099-R with the code mentioned above for your 2026 tax year. Again, the earnings are taxable in 2026.
How do I amend a tax return for a prior year?

@Tax039494

[Edited: 04/16/2026 | 7:09 AM PST]

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Untimely Roth IRA Excess Contribution Help

Re: Untimely Roth IRA Excess Contribution Help