roth excess

[aabernhar]

Hello,

I had a Roth excess 0f 1200 in 2019, and didn't remove it until November 2020.  I  have a 2020 1099-R with 1200 distribution and code J.

Now I don't know how to report this through turbotax to pay the 6% penalty on this 1200.  any help would be appreciated, thank you much

[DanaB27]

You will only have to pay the 6% penalty on your 2019. You do not have to pay the penalty on your 2020 tax return because you removed the excess contribution before December 31, 2020.

To report the excess and penalty on your 2019 return you will enter your Roth contribution under IRA contributions in the Deductions & Credit section. At the end you will get a penalty screen and TurboTax will tell you the penalty amount and create Form 5329. If you need to amend your 2019 tax return then please see How to amend (change or correct) a return you already filed.

To report the 1099-R on your 2020 tax return please follow these steps:

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R

4. On the "Your 1099-R Entries" screen click "continue"

5. Answer the Roth follow-up questions carefully.

[aabernhar]

Thank you,

So there is no way to pay the 6% penalty from 2019 on my 2020 return without amending?  How would this be handled if I hadn't realized the overage for 5 years

[ColeenD3]

You would have accumulated that 6% penalty every year until you removed it.