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frodrigu1
Level 2

Roth excess contribution

So, I over contributed my Roth by $1763 in year 2018. It was too late to remove excess, so I will fix it by not contributing the full amount in 2019, thereby rolling over the $1763 and paying the 6% penalty.

I need clarification,, Do I need to amend my 2018 taxes to show the over contribution. If so , what in the amended form do I have to fill out (section?)  is it part of the tax liability section. Where does form 5329 come into this process as it actually has the area where it asks about the excess contribution. Part IV additional tax on excess contribution to roth iras. Not ever had to file an Amended tax form, I have no clue, on how to pay the excess or if it will transfer to my 2019 taxes..

By the way, there are some answers in this forum that state that you have to pay 6% on the total value of the Roth account, just asking,,, it is only 6% of the amount that is over funded per year that it is in the account. Am I correct??

1 Reply
macuser_22
Level 15

Roth excess contribution

For 2018, if there was no 5329 then you need to amend 2018 and enter the Roth contribution so TurboTax tells you that the amount of excess.  Say in the interview that the excess was not removed.  That should add the 5429 form with the excess and penalty and add that to the amended 1040X form.

 

For 2019, the excess would not be automatically transferred if it has not been reported on the 2018 tax return.  Again in 2019 got to the Roth IRA contribution section and enter your 2019 contribution.  Continue the interview and it will ask about a prior year excess.  Enter the amount,  Then it will ask if you want the excess applied to a 2019 contribution.

 

Amended returns can only be mailed. It is suggested that it be mailed certified with return receipt (or other tracking service) to verify that the IRS receives it.

See this TurboTax FAQ for detailed amend instructions:
https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed


You can check the status of the amended return here, but allow 3 weeks after mailing.

https://www.irs.gov/filing/wheres-my-amended-return

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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