USA Roth Excess contributions 2015-2019

[Ajsmith]

I am trying to assist someone in fixing excess contributions for these 5 years. He had his taxes filed by CPA, that apparently didn’t make the connection that he had no earned income (only military retirement pay). I’ve looked at all IRS instructions, and understand how to fix one year, especially the 2019. My question is can he calculate the total excess contributions, the total excess earnings, calculate penalties and report all on one return? Or does it have to be filed for each year with 5329, and maybe amended returns. TIA

 

[Drmdcpa]

He should have filed 5329 each year. Penalties were due with each year's tax returns.

What I would do is first correct the situation then prepare all 5329s and submit with a request for abatement based on the reliance of the prior CPA that failed to do their job properly.

 

[Ajsmith]

He should have filed 5329 each year. Penalties were due with each year's tax returns.

What I would do is first correct the situation then prepare all 5329s and submit with a request for abatement based on the reliance of the prior CPA that failed to do their job properly.

Thanks for the reply. We calculated the excess contributions and earnings on those, and the 6% per year. When you say “first correct the situation “, do you mean withdraw all the excess contributions and earnings”?

 

[Drmdcpa]

Thanks for the reply. We calculated the excess contributions and earnings on those, and the 6% per year. When you say “first correct the situation “, do you mean withdraw all the excess contributions and earnings”?

Yes get the money out. You will get a 1099r, attach 5329s to that return with explanation and request abatement.