Excess IRA Contributions

rgrave — Sun, 25 Jan 2026 00:50:10 GMT

Hello,

My husband and I each contributed 10,000 to an IRA (which was immediately converted to a Roth) in 2024. On my 2024 taxes, I completed forms 5329 and 8606 for each of us. For 2025, I want to carry the 2,000 excess forward for each of us (we are over 55 so can contribute 8,000). How do I handle this for 2025? What forms need to be completed? Did I do 2024 correctly, if not what needs correcting? Thanks!

Re: Excess IRA Contributions

DaveF1006 — Wed, 28 Jan 2026 16:12:46 GMT

Yes, you were partially correct in the way you handled it in 2024. An "excess contribution" to a Traditional IRA can't be converted to a Roth IRA. If you moved the full $10,000, that means an ineligible amount ended up in your Roth.

You can fix this on your 2025 tax return, both on the 5329 and 8606. This is to show the IRS that the excess contribution is gone.

On the 5329. Go to:

Part III, Line 9: Enter the $2,000 excess from your 2024 Form 5329.
Part III, Line 10: Enter the amount of your 2025 limit ($8,000) that you are "assigning" to the old excess. If you only contribute $6,000 in new cash, you enter $2,000 here.
Part III, Line 15: This should now result in $0, meaning you no longer owe the 6% penalty for 2025 and beyond.

On the 8606:

Line 1: Enter your new 2025 cash contribution (e.g., $6,000).
Line 2: Enter your "Total Basis" from your 2024 Form 8606 (this includes the $2,000 you carried forward).
Line 3: Your total basis should now show $8,000 ($6,000 new + $2,000 old).

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Excess IRA Contributions

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