topic Spousal IRA Excess contribution. in Retirement tax questions

Spousal IRA Excess contribution.

bkg1 — Sun, 21 Mar 2021 03:09:14 GMT

So, I have a spousal IRA which funded for year 2020 in Feb 2021. Realized immediately that I did a ROTH IRA contribution as well in late 2020. So initiated the Return of Excess contribution and got a letter explaining I will receive the 1099-R only in Jan 2022.

After some research I am understanding I can fill 1099-R myself. Box 1 = excess contribution + applicable earning ($2029.39). Box 2a = applicable earning ($29.39). Box 7 = 1 & 8. Check the checkbox "The IRA/SEP/Simple box is checked on my copy of 1099-R".

Some questions

1. Am I getting this correct.

2. Turbotax Premier Desktop is suggesting Form 4852, is that really needed?

3.. Do I need to fill 5329 myself and where is that option?

Re: Spousal IRA Excess contribution.

macuser_22 — Sun, 21 Mar 2021 03:35:42 GMT

@bkg1 wrote:

So, I have a spousal IRA which funded for year 2020 in Feb 2021. Realized immediately that I did a ROTH IRA contribution as well in late 2020. So initiated the Return of Excess contribution and got a letter explaining I will receive the 1099-R only in Jan 2022.

After some research I am understanding I can fill 1099-R myself. Box 1 = excess contribution + applicable earning ($2029.39). Box 2a = applicable earning ($29.39). Box 7 = 1 & 8. Check the checkbox "The IRA/SEP/Simple box is checked on my copy of 1099-R".

Some questions

1. Am I getting this correct.

2. Turbotax Premier Desktop is suggesting Form 4852, is that really needed?

3.. Do I need to fill 5329 myself and where is that option?

No. form 4852 is "Substitute 1099-R" only used to correct an incorrect 10990R that the insurer refused to correct. You have not even received a 1099-R so there is nothing to correct.

You said "So, I have a spousal IRA which funded for year 2020 in Feb 2021. Realized immediately that I did a ROTH IRA contribution as well in late 2020"

What was returned? A "spousal IRA can either be a Roth or a Traditional IRA" which was returned? - a Roth contribution or a Traditional IRA contribution and for which spouse?

Re: Spousal IRA Excess contribution.

bkg1 — Sun, 21 Mar 2021 03:42:14 GMT

Both ROTH and Trad IRA are on my wife's name the contributions added up to 8000. So I submitted ROE from Trad IRA for $2000.

My contributions are separate $4000 in ROTH.

Re: Spousal IRA Excess contribution.

macuser_22 — Sun, 21 Mar 2021 03:52:53 GMT

@bkg1 wrote:

Both ROTH and Trad IRA are on my wife's name the contributions added up to 8000. So I submitted ROE from Trad IRA for $2000.

My contributions are separate $4000 in ROTH.

A return of Traditional IRA contributions made in 2020 for 2020 should have a code 8 (and 1 if under age 59 1/2) in box 7, the total returned amount in box 1 and the earnings in box 2a and the IRA/SEP.SIMPLE box checked.

If you know those amounts you can file it now and avoid amending when the real 1099-R comes.