topic If I absorbed a 2019 Roth IRA overcontribution in 2020, how do I report this on my 2020 return using TurboTax? in Retirement tax questions

If I absorbed a 2019 Roth IRA overcontribution in 2020, how do I report this on my 2020 return using TurboTax?

todalee07 — Fri, 12 Mar 2021 06:26:33 GMT

I realized after I filed my 2019 return that I overcontributed to my Roth IRA in 2019 by $440. So, I filed Form 5329 and paid the 6% penalty, and this year I am able to absorb the $440 excess in my allowed contribution amount for 2020. How do I report the $440 absorption on my 2020 return in TurboTax? I have been trying to figure out how to find Form 5329 in TurboTax but have been unsuccessful so far.

Re: If I absorbed a 2019 Roth IRA overcontribution in 2020, how do I report this on my 2020 retur...

ThomasM125 — Sat, 13 Mar 2021 00:02:02 GMT

You wouldn't need to file form 5329 to report the absorption of the excess contribution in 2020. You only file that form if you have an excess contribution in the current year, which you don't since you took care of the excess from the year before.

Re: If I absorbed a 2019 Roth IRA overcontribution in 2020, how do I report this on my 2020 retur...

todalee07 — Mon, 15 Mar 2021 18:22:41 GMT

Thank you for the quick response, it is much appreciated!

Re: If I absorbed a 2019 Roth IRA overcontribution in 2020, how do I report this on my 2020 return using TurboTax?

macuser_22 — Mon, 15 Mar 2021 18:38:49 GMT

If you paid the 6% penalty in 2019 and are applying the $440 as a 2020 contribution then enter it in the IRA contribution section this way.

Re: If I absorbed a 2019 Roth IRA overcontribution in 2020, how do I report this on my 2020 return using TurboTax?

todalee07 — Mon, 15 Mar 2021 19:51:14 GMT

I originally did enter it that way, but when I got to the end where TurboTax checked my return, it said I had one detail that needed to be reviewed, and that the "Excess to Credit" amount should be $0.00. That's why I posed this question.

Re: If I absorbed a 2019 Roth IRA overcontribution in 2020, how do I report this on my 2020 return using TurboTax?

macuser_22 — Mon, 15 Mar 2021 20:00:41 GMT

I don't know why - when it do it that way (in the desktop version) final review passes fine.

Re: If I absorbed a 2019 Roth IRA overcontribution in 2020, how do I report this on my 2020 return using TurboTax?

todalee07 — Mon, 15 Mar 2021 20:14:29 GMT

I'm wondering if it's because I didn't report the overcontribution on my 2019 tax return in TurboTax (because I didn't catch it until after I had already filed).....I just paid the 6% penalty after I had already filed my 2019 taxes........

Is there any issue if I do not fill out those fields you mentioned in your screenshots?