Welcome back! Ask questions, get answers, and join our large community of tax professionals.
- Topics
- Training
- Community
- Product Help
- Industry Discussions
- User Groups
- Discover
- Resources
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
- Intuit Accountants Community
- :
- Industry Discussions
- :
- Tax Talk
- :
- ROTH IRA Contributions Penalty
ROTH IRA Contributions Penalty
Options
- Mark Topic as New
- Mark Topic as Read
- Float this Topic for Current User
- Bookmark
- Subscribe
- Printer Friendly Page
MarinaEA
Level 4
03-06-2023
11:14 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Two ineligible $6,000 contributions were made on 9/7/22 and 3/16/21 to Roth IRA. The total account value at the moment is $12,661. The income is over the limit.
What is the best way to handle this now? To my understanding, need to withdraw both since recharacterization to a traditional IRA makes no sense since there will be penalties anyways for the 3/16/21 contribution.
Also, the 2021 contribution and penalty are not reflected on 2021 returns. Do we need to amend 2021 return to include a form 5329, or can we just mail a form 5329 without amending the entire return?
To my understanding, if we withdraw all of it by the year end, then no penalty for 2022 contribution? Would anything need to be reported on 2022 returns? I am suspecting the earnings would need to be reported as income on 2022 returns or on 2023 returns ?
3 Comments 3
qbteachmt
Level 15
03-07-2023
12:32 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
This is a duplicate, asked twice, and answered here:
*******************************
Don't yell at us; we're volunteers
Don't yell at us; we're volunteers
MarinaEA
Level 4
03-07-2023
12:39 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Do we need to amend the return to include a form 5329, or can we just mail a form 5329 without amending the entire return? Not able to find an answer to that question.
qbteachmt
Level 15
03-07-2023
12:46 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Once again:
Never ask Twice, because it makes it harder for peer volunteers to follow, find, answer, or respond to other answers. Your other posting has updates. Make sure to read them.
*******************************
Don't yell at us; we're volunteers
Don't yell at us; we're volunteers
