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Level 1
posted Apr 1, 2023 10:10:47 PM

Made mistake between Employee Roth 401k with Roth IRA on submitted returns

In my 2021 returns, I mistakenly confused an Employee Roth 401k contribution (in my case $10,200) with a Roth IRA contribution and reported an excess of $4200. This incurred the 6% fee of $252. 

 

My question is 3-fold:

Should I file an amendment ASAP before completing my 2022 tax returns? Will I need to amend my State return as well? (I live in NY)

Should I submit an extension on my 2022 returns so that:

 

- I don't submit an erroneous Form 5329 for 2022 that shows the excess contribution credit from 2021?

- To account for the time (8 weeks minimum) it takes to process the amendment? 

 

Thanks in advance,

 

0 2 958
1 Best answer
Expert Alumni
Apr 2, 2023 12:26:11 PM

No, you don't need to wait to file your 2022 tax return. Just make sure you remove the incorrect excess contribution from prior years during the interview:

 

  1. Click on "Search" on the top right and type “IRA contributions”
  2. Click on “Jump to IRA contributions"
  3. Select “Roth IRA
  4. On the "Do you have any Excess Roth Contributions" answer "Yes"
  5. On the "Enter Excess Contributions" screen delete any amount that was carried over.

 

Please see How do I amend my federal tax return for a prior year? to amend your Federal 2021 tax return. 

 

No, you don't need to amend your 2021 NY State return.

2 Replies
Expert Alumni
Apr 2, 2023 12:26:11 PM

No, you don't need to wait to file your 2022 tax return. Just make sure you remove the incorrect excess contribution from prior years during the interview:

 

  1. Click on "Search" on the top right and type “IRA contributions”
  2. Click on “Jump to IRA contributions"
  3. Select “Roth IRA
  4. On the "Do you have any Excess Roth Contributions" answer "Yes"
  5. On the "Enter Excess Contributions" screen delete any amount that was carried over.

 

Please see How do I amend my federal tax return for a prior year? to amend your Federal 2021 tax return. 

 

No, you don't need to amend your 2021 NY State return.

Level 1
Apr 3, 2023 8:05:41 PM

Thank you!