Form 5329 issue

Forum|Forum|3 years ago
March 26, 2023
2 replies
7 views

After filling out my information for 2022, TurboTax claims I overcontributed to a Roth IRA this year. However, I contributed nothing to a Roth IRA in 2022, and yet I seem to be getting this spurious result. I do have a Roth IRS, but haven’t contributed to it since 2018. I had the same issue happen last year and received a nearly $200 penalty because of it. Can you help?

DanaB27

Level 15

It might be that you have a prior year's excess contribution carried over. Did you have an excess Roth contribution in prior years? Did you remove it before the due date of that year?

Please go to the IRA contribution interview and check for the carried-over excess. If you had removed the excess in prior years then delete the amount but if you didn't remove it then you will have to pay the 6% penalty as long as the excess stays in the account:

Click on "Search" on the top right and type “IRA contributions”
Click on “Jump to IRA contributions"
Select “Roth IRA”
Continue until the "Enter Excess Contributions" screen and verify if an excess is carried over (delete it if you removed it in prior years)

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RjwinstoAuthor

Level 2

I understand that the penalty exists for over-contributing to a Roth IRA. However, the maximum contribution that I've made to the Roth IRA is $2400 in a single year (starting 2016). So, I never exceeded the yearly contribution limit. Yet, turbotax year after year says I have exceeded the contribution limit...which results in a penalty from the IRS. I am unsure what to try to delete this error, but I appreciate any help you might be able to provide.

MayaD

Alumni - Intuit

You've made an excess contribution if you contributed more than you're allowed to either IRA or if you contributed to a Roth when you made too much to qualify.

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