Non deductible IRA and Excess Roth contribution

kb255 — Sat, 21 Mar 2020 12:59:50 GMT

I contributed $7000 to my Traditional IRA and $7000 to my roth IRA. My income ended up over the limit and in Turbo tax, I can remove the excess Roth contribution in the program but I can't find a way to remove my Traditional IRA contribution. Do you know where in the program I deduct the $7000 for my non deductible Traditional IRA contribution?
I am withdrawing the amounts prior to April 15 per the guidelines.

Re: Non deductible IRA and Excess Roth contribution

dmertz — Sat, 21 Mar 2020 13:17:48 GMT

Note that only your Roth IRA contribution is an excess contribution (both because you are over the MAGI limit and because the contribution limit for 2017 is $7,000 for your traditional IRA and Roth IRA contributions combined). Your traditional IRA contribution on only nondeductible, not an excess contribution.

If you obtain a return of contribution of your traditional IRA contribution, you would simply not enter the traditional IRA contribution into TurboTax (or you would go back, tell TurboTax that you made a traditional IRA contribution, then delete the $7,000 value that you originally entered). Since you'll still report the Roth IRA contribution and, when TurboTax indicates that the Roth IRA contribution is an excess contribution, indicate that you had it returned. In the explanation statement for the return of contribution from the Roth IRA you can also include your explanation of the return of contribution from the traditional IRA.

If there are earnings attributable to the returned contributions, the earnings need to be reported on your 2019 tax return by entering into 2019 TurboTax the 2020 Forms 1099-R that you will be receiving near the end of January 2021. codes J and P for the return of the Roth IRA contribution and code P (plus code 1 or 7 depending on whether you are under or over age 59½ at the time of the return of contribution, respectively) and the IRA/SEP/SIMPLE box marked. In either case these 2020 Forms 1099-R will have the $7,000 plus gain in box 1 and only the gain in box 2a.

Re: Non deductible IRA and Excess Roth contribution

kb255 — Sat, 21 Mar 2020 17:48:55 GMT

dmertz

Thank you for the help.

topic Non deductible IRA and Excess Roth contribution in Retirement tax questions

Non deductible IRA and Excess Roth contribution

Re: Non deductible IRA and Excess Roth contribution

Re: Non deductible IRA and Excess Roth contribution