TKTax Posted September 25, 2019 Report Share Posted September 25, 2019 Client made an excess Roth IRA contribution in 2017 and 2018. He has withdrawn the 2018 contribution before due date, so no penalty for 2018. He still owes the 2017 penalty. He has already filed for 2017. Do I send in a paper Form 5329 for 2017 and payment with that? The instructions tell me that I need to file a 2018 Form 5329 if he had tax due for 2017. Couldn't I report it and pay on there? First time on the prior year penalty, a little confused. Quote Link to comment Share on other sites More sharing options...
Catherine Posted September 26, 2019 Report Share Posted September 26, 2019 This won't answer your specific question, and presupposes the client will both listen to you and act in time. You can have people take out the excess for the two years from the later year's contribution, and then re-characterize (letter to the custodian should do it) the excess from the earlier year to be a regular, non-excess contribution for the later year. Example: $50 overcontib for 2017 and $75 overcontrib for 2018. Take $125 out of 2018, letter to custodian saying $50 of contrib for 2017 was really for 2018. Poof! It's done. 2 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.