topic Do I need to file a tax amend if I rolled back 2020 Roth IRA contributions into my 2019 Roth IRA quota after I filed my 2019 tax returns? in Retirement tax questions

Do I need to file a tax amend if I rolled back 2020 Roth IRA contributions into my 2019 Roth IRA quota after I filed my 2019 tax returns?

User2698470 — Sat, 10 Oct 2020 18:45:59 GMT

I made contributions to my 2020 Roth IRA quota earlier this year. I just realized I won't be eligible for Roth IRA contributions in 2020, so -after I filed my 2019 tax returns- I rolled back those 2020 contributions into my 2019 Roth IRA contribution allowed quota.

Time line:
March 2020: Contributed to 2020 Roth IRA
April 2020: Filed 2019 Tax Returns
September 2020: rolled back 2020 contributions into 2019 Roth IRA quota
October 2020: do I need to file a tax amend before October 15th?

Re: Do I need to file a tax amend if I rolled back 2020 Roth IRA contributions into my 2019 Roth IRA quota after I filed my 2019 tax returns?

fanfare — Sat, 10 Oct 2020 19:43:45 GMT

Since Roth contributions are not shown on tax return, what would be different if you amended?

Your custodian may change the "for" date if you are prior to your tax filing day, not including extensions.

Don't see how you could do this in September.

Re: Do I need to file a tax amend if I rolled back 2020 Roth IRA contributions into my 2019 Roth IRA quota after I filed my 2019 tax returns?

macuser_22 — Sat, 10 Oct 2020 20:01:38 GMT

What you say cannot be done.

You cannot "roll" an excess 2020 Roth contribution at all. You CAN recharacterize to a Traditional IRA contribution instead of a Roth contribution that is treated as if the Roth contribution never happened and it was a Traditional IRA contribution in the first place.

However, if that was done after July 15, 2020 (you say it was done in Sept) then it was too late to contribute to ANY 2019 IRA. It could ONLY be recharactorized as a 2020 Traditional IRA contribution that will be reported on your 2020 tax return next year.

Per IRS Pub 590A https://www.irs.gov/publications/p590a#norecharacterizationsofconversionsm-550dcfb7

Recharacterizing excess contributions.

You can recharacterize only actual contributions. If you are applying excess contributions for prior years as current contributions, you can recharacterize them only if the recharacterization would still be timely with respect to the tax year for which the applied contributions were actually made.