topic Tax Year Prior to 2020: Excess 2019 Roth IRA Contribution in Retirement tax questions

Tax Year Prior to 2020: Excess 2019 Roth IRA Contribution

hslettel — Mon, 22 May 2023 22:19:39 GMT

I filed my 2019 return. Then I realized I made a contribution in January 2019 to my Roth IRA that is not allowed (I retired). I had it reversed and learned I have earnings that will bump my tax liability by about $100. I am over 60 so I don't have an early withdrawal penalty.

Is it better to wait until I receive the 1099-R in 2021 or is it better to file an amended return now based on the earnings reported? If I amend now (before April 15), do I create a substitute 1099-R since one hasn't been issued? If I wait until 2021, will the only downside be that I will have to pay interest on the tax underpayment of $100?

Re: Excess 2019 Roth IRA Contribution

VictorW9 — Wed, 11 Mar 2020 03:01:10 GMT

It's your choice. Either way, it is not going to have any impact in your tax situation. You can amend by creating a substitute 1099-R with the earnings taxable now as entered in box 1 and box 2.

Otherwise you have the option to wait and take care of it when you received your 1099-R next year. You may want to choose the option that is administratively convenient for you.

Re: Excess 2019 Roth IRA Contribution

hslettel — Wed, 11 Mar 2020 15:45:26 GMT

Appreciate your advice! Thanks!