topic Form 5329 (Ineligible Roth) in Retirement tax questions

Form 5329 (Ineligible Roth)

mahoosuc — Wed, 11 Feb 2026 10:44:56 GMT

Hi, I believe I need to fill out form 5329 on my 2023 taxes to pay the penalty for an ineligible Roth contribution I made in 2022 and still had in my account at the end of 2023 (long story, but I recharacterized the contribution instead of converting it to Roth). However, Turbotax is not sending me to that form when I do my taxes. Is there a way to insist it gives me the form, or another work-around? Or perhaps there is something I am missing.

Thanks!

Re: Form 5329 (Ineligible Roth)

Anonymous_ — Fri, 20 Dec 2024 02:34:09 GMT

Re: Form 5329 (Ineligible Roth)

mahoosuc — Mon, 14 Oct 2024 23:06:56 GMT

Thanks. I called them and they didn't come up with any work-around, just that the software would pop up the form if it was required. I'm still thinking I need to fill it out since I had the tax year 2022 ineligible contribution still in my account at the end of 2023 (I am going to remove it before the end of this year).

I suppose I can go and file that as an amendment when I take it out, but that seems like too many steps/risky.

Is there a chance I entered it wrong? How I discovered all of this was when I entered my 1099-Rs the software recognized these as a recharacterization and not a conversion and prompted that I may need to amend my 2022 taxes because of it...

Re: Form 5329 (Ineligible Roth)

fanfare — Tue, 15 Oct 2024 00:41:14 GMT

For a 2022 Roth Contribution:

recharacterization: the original amount to the first IRA you report as contribution to the second IRA, earnings move but are ignored.
You must use a trustee-to-trustee transfer before the due date April 15,2023 ( or Oct 15, 2023 if 1040 was timely filed..).
You will instruct trustee to calculate the allocable earnings.

report this on your tax return for the year during which the contribution was made.
Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA.

--- If you recharacterized in time, then it is no longer a Roth contribution and it is not an excess contribution. as long as you had earnings in 2022 no less than the contributed amount.

It may be a non-deductible contribution in whole or in part depending on your AGI.

That is the reason you must amend 2022.

@mahoosuc

Re: Form 5329 (Ineligible Roth)

fanfare — Tue, 15 Oct 2024 00:47:28 GMT

If you recharacterized a Trad IRA contribution to Roth IRA, but ineligible, you have a 6% penalty for 2022, 2023 and ongoing years until you remove the contribution.

In this case, any earnings earned in the Roth remain in the Roth.

@mahoosuc

Re: Form 5329 (Ineligible Roth)

mahoosuc — Tue, 15 Oct 2024 03:35:14 GMT

Thanks. Yes that’s my case but TurboTax is not prompting me to pay the penalty.

Re: Form 5329 (Ineligible Roth)

fanfare — Tue, 15 Oct 2024 13:02:22 GMT

After starting amend, follow the steps

See this post

https://ttlc.intuit.com/community/taxes/discussion/form-5329-without-a-1099-r-in-online-version/01/3208922#M1180121

In desktop program, you can open Form 5329 directly.

@mahoosuc

Re: Form 5329 (Ineligible Roth)

mahoosuc — Tue, 15 Oct 2024 14:32:58 GMT

Thanks. I think I figured it out. Really appreciate your help.