topic Re: Roth Excess Contributions for Tax Year 2020, Returned and Claimed in 2021 but Carrying Over A... in Retirement tax questions

Roth Excess Contributions for Tax Year 2020, Returned and Claimed in 2021 but Carrying Over Again in 2022 for 2021

JuliaMass — Mon, 09 Mar 2026 04:50:41 GMT

In 2020 I made an excess Roth contribution. I removed the contribution and created a manual 1099R to note the excess and paid the taxable amount with my 2020 return in 2021. Today I'm finalizing my 2021 taxes and Turbotax is adding form 5329 (I did not enter the information manually) in Section Part IV on lines 18-21. Line 18 reads: "Enter your excess contributions from line 24 of your 2020 Form 5329. See instructions. If zero, go to line 23". So it is saying I owe additional tax again Why is this happening? Note - I received a form 1099R for 2021 from my broker - but was not planning on entering anything (since I already included the information and paid the tax due last year). Has anyone else come across this issue?

Re: Roth Excess Contributions for Tax Year 2020, Returned and Claimed in 2021 but Carrying Over A...

DanaB27 — Sat, 26 Feb 2022 21:08:01 GMT

No, you do not owe an additional 6% penalty. Please review your entries during the IRA contribution interview, it seems the excess amount got carried over. You do not have no longer an excess contribution because you withdrew the 2020 excess contribution plus earnings by the due date of the 2020 tax return.

Login to your TurboTax Account
Click on "Search" on the top right and type “IRA contributions”
Click on “Jump to IRA contributions"
Select “Roth IRA”
Continue until you get "Enter your Excess Contributions" screen and make sure no amount is entered

Re: Roth Excess Contributions for Tax Year 2020, Returned and Claimed in 2021 but Carrying Over A...

JuliaMass — Sat, 26 Feb 2022 21:39:29 GMT

Dana - thank you for your response. I am using the CD version of Turbotax - do you know how I get to IRA Contributions? I found an IRA Contribution Worksheet. It shows an amount under Excess Contribution as of 12/31/20. It appears that Turbotax is pulling the information from last year's return. Should I just manually delete the excess contribution amount? Thank you.

Re: Roth Excess Contributions for Tax Year 2020, Returned and Claimed in 2021 but Carrying Over A...

DanaB27 — Sat, 26 Feb 2022 21:53:30 GMT

Please follow these steps to get to the IRA contribution section:

Open your return
Click “Deductions &Credits” on the top
Click "I'll choose what to work on"
Scroll down to “Traditional and Roth IRA Contributions” and click “Start”
Select “Roth IRA”
Continue until you get "Enter your Excess Contributions" screen and make sure no amount is entered

Re: Roth Excess Contributions for Tax Year 2020, Returned and Claimed in 2021 but Carrying Over A...

JuliaMass — Sat, 26 Feb 2022 22:16:05 GMT

Great! So I removed where it automatically entered the excess contribution and I believe that worked. Thank you!