Roth IRA 1099R Excess and Distributions

[sstax2018]

Gurus,
I contributed excess in 2017 to Roth IRA. Found it out late in 2018 and took a distribution of the excess contribution. I have a 2018 1099R for the same. Do I have to first amend my 2017 tax to show this and then file 2018 tax? I am confused looking at form 5329. I took the distribution after the April+6 months time frame. Any help would be appreciated. I have to also fifure out if I contributed more on 2018 and take it by October of this year. I should report that next year, right?

 

[Taxing Matters]

Gurus,
I contributed excess in 2017 to Roth IRA. Found it out late in 2018 and took a distribution of the excess contribution. I have a 2018 1099R for the same. Do I have to first amend my 2017 tax to show this and then file 2018 tax? I am confused looking at form 5329. I took the distribution after the April+6 months time frame. Any help would be appreciated. I have to also fifure out if I contributed more on 2018 and take it by October of this year. I should report that next year, right?

You'll need to amend the 2017 return to pay the penalty for the excess contribution. You can file your 2018 return before you do that, but don't neglect to get that amended return done. You needed to withdraw not only the excess contribution but also the interest/gains that accumulated on that money, which is known net income attributable (NIA) to the excess contribution. Did you do that?

 

[sstax2018]

You'll need to amend the 2017 return to pay the penalty for the excess contribution. You can file your 2018 return before you do that, but don't neglect to get that amended return done. You needed to withdraw not only the excess contribution but also the interest/gains that accumulated on that money, which is known net income attributable (NIA) to the excess contribution. Did you do that?

Oh. I have to figure that NIA and withdraw also. Once I do that, I can file 5329 for amendment? Any easy way to figure out NIA? also, in 5329, do I have to fill the top with 10% penalty and the roth Ira portion later for 6% penalty?

If I overpaid again in 2018, I should just take out the excess now so it is like I didn't contribute that excess, correct?

 

[sstax2018]

Any help?

 

[LdiJ]

Oh. I have to figure that NIA and withdraw also. Once I do that, I can file 5329 for amendment? Any easy way to figure out NIA? also, in 5329, do I have to fill the top with 10% penalty and the roth Ira portion later for 6% penalty?

If I overpaid again in 2018, I should just take out the excess now so it is like I didn't contribute that excess, correct?

Yes, if you also overpaid in 2018 you should take the excess out now. However, you should not have overpaid two years in a row. Make sure before you contribute anything at all for 2019 that you know exactly what your limits are.

 

[sstax2018]

Yes. Planning to take out excess from 2018. Stopped for 2019 completely after this goof up later last year if I amend 2017, then can I ignore the 1099R I received for 2018?

 

[LdiJ]

Yes. Planning to take out excess from 2018. Stopped for 2019 completely after this goof up later last year if I amend 2017, then can I ignore the 1099R I received for 2018?

You really cannot just ignore it. It has to be dealt with or you will get a CP-2000 letter about a year from now and will have to deal with it then. I really recommend that you consider using a tax professional to help you fix 2017 and handle 2018.