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Hello,
My client had and excess IRA contribution in 2018 in the amount of $4,000. The excess was the result of him being older than 70 1/2
In 2018, the 6% tax was assessed in the amount of $240.
In 2019, the excess contribution remained. He did not withdraw it. The tax in 2019 is calculated at $480. It is showing the 2018 contribution and a 2019 contribution of $4,000 even though he did not make a contribution in 2019.
What should the tax be in 2019? I'm thinking $240, but ProSeries is showing $480
Any thoughts?
Solved! Go to Solution.
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I think you are right at $240.
Unless there was additional excess contributions in 2019.
Start with the penalty amount of $480 and try to follow it backwards. It sounds like somewhere there is an addtional $4,000 entered in the wrong place.
Also review the IRA contribution worksheet. Sometimes I can find links there or entries there that by following will take me to the source.
Another place to look is the carryforward information.
This is a tough one if it is really resulting from computer carryforward as it may not be somewhere in the system that we are familiar with entering.
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Thank you. I was thinking along the same lines as well.
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The OP has a follow up question here:
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