Excess ROTH IRA Contribution

smithdf5307 — Fri, 24 Apr 2020 19:31:57 GMT

I made an excess ROTH IRA contribution in July of 2019 from a Fidelity Rollover IRA to a Fidelity ROTH IRA (Conversion). I exceeded the income limits for MAGI. Can I rollover the excess ROTH IRA back into the original Rollover IRA or do I need to open a new IRA account? In addition, I was wondering if the original transaction triggers a 10% early withdrawal penalty? Since it was I rollover and I never withdrew the money I am hoping not as I am not 59 1/2. It looks like I report the transaction in Quicken as prompted and then amend my 2019 return next year as required with the new 1099-R. Thanks for the help.

Re: Excess ROTH IRA Contribution

macuser_22 — Fri, 24 Apr 2020 19:57:02 GMT

@smithdf5307 wrote:

I made an excess ROTH IRA contribution in July of 2019 from a Fidelity Rollover IRA to a Fidelity ROTH IRA (Conversion).

A rollover conversion is NOT a IRA contribution and does not get entered into the IRA contribution section. There are no limits on how much can be converted.

It is ONLY entered by answer the Roth conversion question in the 1099-R interview.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

If this was a rollover or conversion, answer the question that you moved the money to another retirement account (can be the same account). The screen will open up with choices of where it was moved.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

It will show as income on the summary screen which shows gross income, not taxable income.

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Excess ROTH IRA Contribution

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