forms 5329T 5329S

Forum|Forum|5 years ago
March 12, 2021
7 replies
25 views

Help Why is my client being charge an excess contribution tax if the only contributed the maximum allowable in a IRA, for their ages?

i called proseries and the rep told me it was a glitch in the program is anybody else experiencing this?

ProSeries Basic

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

Follow the money down the IRA contribution worksheet to you can understand why its an excess.

There are other factors besides age when determining if an IRA contribution is allowed or in excess.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

L

LathannaAuthor

Level 3

Hi, thank you for your input. I thought that it was from lack of earning also but there are earnings. Although the taxable income is lower

rbynaker

Level 13

My first thought: Lack of earned income.

L

LathannaAuthor

Level 3

Thank you for your input There were earnings. I just spoke with a rep from intuit and there was a showing of excess contribution from 2019 of 7k which we changed to 0 and that corrected the problem.

rbynaker

Level 13

If there was an excess contribution in 2019 was there a corrective distribution? If not, it counts as a 2020 contribution and the taxpayer continues to pay the penalty each year until it's fixed. I would not arbitrarily change a carried over number without at least seeing a 1099-R showing the corrective distribution (+ earnings).

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