Excess contribution to Roth

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Topic Author
Leroy Jones
Posts: 72
Joined: Thu Nov 16, 2017 8:14 pm

Excess contribution to Roth

Post by Leroy Jones » Tue Jan 14, 2020 9:04 am

In early 2018 I retired from my part-time job. I had over contributed to my Roth and my wife's Roth for the year based on my income for the year and realized that when I got my W2 for 2018 in early 2019. I immediately removed the over contribution. Just printed my 1099R 's from Vanguard and on the one for the Roth's, mine and my wife's, they have both non taxable and taxable listed. The distribution code is PJ. Gross distribution, non taxable was $230.81, Taxable was $2.81. We were both 65 when I over contributed. Since the amount of taxable is under $10.00 combined does this still have to be reported and if so on what form.
Leroy Jones :sharebeer

Silk McCue
Posts: 3813
Joined: Thu Feb 25, 2016 7:11 pm

Re: Excess contribution to Roth

Post by Silk McCue » Tue Jan 14, 2020 9:38 am

I accurately report information on each 1099R that I receive without question. If you are using tax software such as TurboTax it will readily take care of this. Any amount more than 49 cents is reportable and taxable.

What concern do you have that would make you question whether or not to report it?

Cheers

Topic Author
Leroy Jones
Posts: 72
Joined: Thu Nov 16, 2017 8:14 pm

Re: Excess contribution to Roth

Post by Leroy Jones » Tue Jan 14, 2020 9:58 am

Silk, I really don't have a concern. My tax person would handle anyways.
Thanks
Leroy Jones :sharebeer

Silk McCue
Posts: 3813
Joined: Thu Feb 25, 2016 7:11 pm

Re: Excess contribution to Roth

Post by Silk McCue » Tue Jan 14, 2020 10:29 am

Leroy Jones wrote:
Tue Jan 14, 2020 9:58 am
Silk, I really don't have a concern. My tax person would handle anyways.
Thanks
Leroy Jones :sharebeer
But yet you wrote a full paragraph laying out the details of this $2.81 tax reporting conundrum asking for feedback from Bogleheads. ;)

Cheers

Alan S.
Posts: 8896
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Excess contribution to Roth

Post by Alan S. » Tue Jan 14, 2020 3:02 pm

Leroy Jones wrote:
Tue Jan 14, 2020 9:04 am
In early 2018 I retired from my part-time job. I had over contributed to my Roth and my wife's Roth for the year based on my income for the year and realized that when I got my W2 for 2018 in early 2019. I immediately removed the over contribution. Just printed my 1099R 's from Vanguard and on the one for the Roth's, mine and my wife's, they have both non taxable and taxable listed. The distribution code is PJ. Gross distribution, non taxable was $230.81, Taxable was $2.81. We were both 65 when I over contributed. Since the amount of taxable is under $10.00 combined does this still have to be reported and if so on what form.
Leroy Jones :sharebeer
Code PJ on a 2019 1099R means the Box 2a income is reportable for 2018. That would require a 1040X for 2018 to report $6 more income. I would not bother filing a 1040X for that little.

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