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Excess IRA contributions

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Level 2

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?

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1 Solution

Accepted Solutions
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Level 5

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.

View solution in original post

3 Replies 3
Highlighted
Level 5

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.

View solution in original post

Highlighted
Level 2

Thank you.  I was thinking along the same lines as well.

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Highlighted
Level 15

The OP has a follow up question here:

https://proconnect.intuit.com/community/proseries-discussions/discussion/excess-traditional-ira-cont...

Former Chump... umm.... AllStar.
If a post answers your question, click on *Accept as solution* for future searches
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