Roth IRA excess contributions in 2023

[user17581396133]

Hi. I opened a roth IRA in 2023 and also got married that year. For 2023, I filed my taxes as a non resident alien so I filed single. However, I did not realize I was not allowed to contribute if I was married but filing singly.  In 2024, both me and my husband were allowed to file as resident aliens and we filed jointly using Turbotax. In the form 5329 in part IV, line 18 Enter your excess contributions from line 24 of your 2023 Form 5329. See instructions. If zero, go to line 23 - I put my excess amount for 2023 but I never filed a form 5329 in 2023 as I was a nonresident alien. So what should I do about my 2023 ROTH IRa contributions and do I need to amend both my 2023 and 2024 taxes? To note I was well under maximum contribution for 2024 . Thank you

[Katie-P]

Since you contributed to a Roth IRA for tax year 2023 and you were not allowed to do that, you would need to amend your 2023 tax return to add Form 5329 to report the excess contribution and pay the 6% penalty. Enter the excess contribution on line 23 of Part IV - Additional Taxes on Excess Contributions to Roth IRAs. Line 25 will have you enter the 6% penalty on the amount from line 22 + 23. 

On the 2024 return, you will indicate in TurboTax that you had an excess Roth IRA contribution, and you will now have a Form 5329 from 2023 that you can use to properly answer the 2024 questions. But it sounds like you may have already done that, just without a 2023 Form 5329 to substantiate it. I do not see the need to amend the 2024 tax return if it was ultimately reported correctly and you paid any applicable penalties.

[Edited 9/19/25 | 2:00AM PST]

@user17581396133 

[Katie-P]

My follow-up question to you is if your 2023 excess contributions are on line 18 on the 2024 Form 5329.

[user17581396133]

Thank you @Katie-P . Yes, I did put the excess amount from 2023 in the form 5329 of 2024, part IV line 18 but I never filled 5329 in 2023. So my next step would just be to fill the 5329 for 2023 and pay the 6% of the excess (eg $2000)? Since I was below my contribution limit in 2024 the excess amount from 2023 was absorbed into 2024 I believe. Since line 22 for form 5329 Part IV in 2024 is 0. So do I need to do anything for the excess for 2023? Like withdraw it or something? 

[Katie-P]

You are correct that your next step would be to prepare the 2023 Form 5329 and pay the IRS the 6% penalty on the $2k.

If you indicated that the $2k excess should be applied to your 2024 Roth IRA contribution, and you were under the allowable contribution limit for the year, then you are also correct that line 22 would be 0. In this case, you would not need to withdraw the $2k, as your said that your total 2024 IRA contribution was below the allowable limit.

[user17581396133]

Thanks @Katie-P / would I need to just pay 6% on the excess or on excess+interest? If so, how would I determine that? And can I file form 5329 through turbo if I did not use it for 2023? Thanks

[Katie-P]

You cannot file Form 5329 through TurboTax Online if you did not use that platform for the original 2023 tax return. 

After the IRS receives and processes your 2023 Form 5329, they will assess you interest and a late payment penalty on the 6% excise tax. They will mail you a notice with the amount due. You can either pay it at that time or request a first time penalty abatement.

The failure to pay penalty for 2023 is 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid, up to a maximum of 25% of your unpaid taxes.

Interest is subject to change quarterly. You can find the rates here: Quarterly interest rates