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-   -   Excess Roth Contribution for 2020 (https://www.askmehelpdesk.com/showthread.php?t=847940)

  • Jan 26, 2021, 08:09 PM
    Trishala Raj
    Excess Roth Contribution for 2020
    Hello Atlanta Tax Expert,


    An excess contribution was made in Roth for 2020. Immediately on realizing it was excess contribution , the excess was withdrawn along with earnings. Fidelity has told they will issue a 1099 R only for 2021. Doubt is regarding if anything should be reported in 2020 return. Will the earnings be taxed for 2020 or will it be taxed in 2021 when it shows in the 1099 R.

    Do advice
  • Jan 26, 2021, 09:02 PM
    AtlantaTaxExpert
    Was the withdrawal physically done in 2020 or 2021?
  • Jan 27, 2021, 04:38 AM
    Trishala Raj
    It was done in 2021
  • Jan 27, 2021, 08:20 AM
    AtlantaTaxExpert
    Then you report nothing on your 2020 return and address it on the 2021 return.
  • Jan 27, 2021, 08:49 AM
    Trishala Raj
    Thanks so much. So next year for 2021 Return a 1099 R is received. We enter
    income earned on the excess contribution which is taxed and and a penalty of 10% on that income .A form 5329 form is generated for the penalty. Correct?
  • Jan 27, 2021, 09:04 AM
    AtlantaTaxExpert
    Yes, that is correct.
  • Jan 27, 2021, 09:24 AM
    Trishala Raj
    Thanks. Appreciate your response.
  • Jan 27, 2021, 09:32 AM
    AtlantaTaxExpert
    Glad to help!

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