topic Excess Roth contribution in 2018 withdrawn before 2019 deadline. Why does 2018 amend show me getting taxed when amount withdrawn is less than contribution due to loss? in Retirement tax questions

Excess Roth contribution in 2018 withdrawn before 2019 deadline. Why does 2018 amend show me getting taxed when amount withdrawn is less than contribution due to loss?

orbops — Wed, 05 Feb 2020 00:00:47 GMT

I have a 2019 1099-R form, but TurboTax told me I need to amend 2018 form. Now 2018 amended form says I owe money on the loss - which doesn't sound correct to me.

Re: Excess Roth contribution in 2018 withdrawn before 2019 deadline. Why does 2018 amend show me ...

DianeC958 — Fri, 07 Feb 2020 20:53:18 GMT

The loss on your Roth IRA is not deductible but you should not owe taxes on the loss since you contributed the money to a Roth IRA.

In amending your 2018 return put in the full amount you contribute to the Roth IRA. Then you will have a form 8606 for the amount that was overcontributed.

With the information from the 8606 form as a part of your 2019 return, it tells the program when you withdraw the money that there is no penalty due on the withdrawal.

Link for How do I report a withdrawal of an excess 2018 Roth IRA contribution

Re: Excess Roth contribution in 2018 withdrawn before 2019 deadline. Why does 2018 amend show me ...

orbops — Sun, 09 Feb 2020 16:36:00 GMT

When I entered the 2018 contribution into TurboTax for the 1040X Amended return, it never generated an 8606 form for the 2018 1040X return and continued to state that I owed 100% taxes for the contribution loss. I searched for other answers to the problem, and one suggestion ended up working for me.

I had to remove the original Roth contribution from my 2018 return, then filled out the 2019 1099-R forms for my wife and I that showed what our withdrawal/distribution was. TurboTax then showed no taxes were due, so we completed the amended 2018 1040X form and mailed it in.

For the 2019 return, TurboTax said the 8606-T form will not be available until 2/12/2020, so we're waiting until then to finish up our 2019 return.