Form 5329

cafoster123 — Thu, 13 Mar 2025 19:38:53 GMT

I have a problem that I am working to resolve with the IRS related to ROTH funds that were rolled over incorrectly several years ago into a Traditional IRA. For years 2021 thru 2023, I have filed with the IRS the amended returns with the corresponding 5329 filled out to show the "excess contribution", including penalty payments. This was all done outside TurboTax.

My problem is with the 2024 tax return. For sake of this discussion, assume I have 50,000 rolled over incorrectly from ROTH IRA to Traditional IRA, and a totally separate traditional IRA that has 100,000. Also assume my required RMD for the total 150,000 (since the ROTH portion is not yet corrected) is 20,000. I took in excess of 20,000 out but it was all from the "real" traditional IRA. Nothing has been touched in the account that was incorrectly rolled over.

When I try to fill out the 5329 form, it takes me to a worksheet. I enter on line 4 the excess contributions of the 50,000, but then TurboTax auto fills in line 5 to say 30,000 is excess contribution carried over to 2025. I have no way to fix that, and the actual carryover of excess remains 50,000.

Is there a way to resolve this inside TurboTax, or do I just need to do a separate 1040-X with the 5329 form as I have done in the past?

topic Form 5329 in Retirement tax questions

Form 5329