Roth IRA Excess Contribution Penalty Payment

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
giants235
Posts: 2
Joined: Sun Apr 16, 2017 10:34 pm

Roth IRA Excess Contribution Penalty Payment

Post by giants235 » Sun Apr 16, 2017 10:36 pm

I recently discovered an excess contribution made to my Roth IRA in 2015 and am now correcting the action. Thanks to the great answers found on this site from past questions, I have had most of my questions answered. I am planning to send in a form 5329 for 2015 with a check for a 6% penalty ($330 on the $5,500 contribution) and a form 5329 for 2016 with a check for the same amount. I am uncertain if I need to get these sent in before the 2016 tax deadline, but decided not to take any chances and send them in ASAP. Assuming all the above I have stated is correct, I still have two minor inquiries:

1. I have seen conflicting information about needing to send in a 2015 1040x with my 2015 5329. I am assuming the adjustment I would need to make to my 2015 1040x would be the 6% penalty. My preference would be to not fill out a 2015 1040x and not have to worry about if I filled it out right or not. Thus unless I hear it is absolutely required, I plan to just send in the 2015 5329 with a check.

2. I am not sure what is the proper address to mail the checks in ironically. I live in California and it looks like here there is a different address to send a 1040 vs. a 1040x. Therefore, should I send my 2015 5329 to the address for the 1040x and my 2016 5329 to the address for the 1040?

3. This is related to question #2, but I have already filed my taxes for this year, so I am hoping there is no issue sending in my 2016 5329 in separately?

I appreciate a prompt reply as I would like to get these envelopes post-marked by April 18 to not take any chances on these being counted late.

1year23
Posts: 43
Joined: Fri Apr 01, 2016 8:31 am

Re: Roth IRA Excess Contribution Penalty Payment

Post by 1year23 » Mon Apr 17, 2017 3:47 pm

Im not qualified to answer, anyone out there with advice?

Alan S.
Posts: 8704
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Roth IRA Excess Contribution Penalty Payment

Post by Alan S. » Mon Apr 17, 2017 7:49 pm

If the IRS was consistent regarding stand alone vs 1040X with the 5329, we could indicate with certainty. But they are not and the instructions are poorly written, so I would guess that about 80% of the time they will accept the stand alone 5329 form. Whether you complete a needless 1040X or not is playing the 80-20 lottery.

Whatever you decide about the 1040X, send the data and check to:
Internal Revenue Service
PO Box 7704,
San Francisco, CA 94120-7704

Topic Author
giants235
Posts: 2
Joined: Sun Apr 16, 2017 10:34 pm

Re: Roth IRA Excess Contribution Penalty Payment

Post by giants235 » Mon Apr 17, 2017 11:15 pm

Thanks Alan! I'll send both of my 5329s there.

Post Reply