Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
The excess contribution for 2011 gets counted toward the total excess. As far as I can tell, this will continue happening for future years until a distribution is made to withdraw the excess contribution.

From your earlier responses I believe you disagree with this conclusion.

No, actually I agree with you. I think this is how it should go.

2011: File 5329 showing a $300 penalty
2012: File 5329 showing a $600 penalty

2013: You have withdrawn the contribution and earnings. File Form 5329 with your return showing a $600 penalty.

2014: Withdraw $15,000 plus the earnings on the 2014 contribution. If you want to consider Traditional IRAs you can also recharacterize. When you file your Form 5329 with your w014 return you'll wind up with a zero excess contribution and penalty.

Rulr Your Retirement Home Fool
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.