Timing of the removal of excess Roth contribution and non-deductible IRA contribution/conversion
Dear Alan et al,
Our client Angie made a $6,500 excess contribution to her Roth IRA for the 2018 tax year. Our plan is to remove the $6,500 contribution, file the Form 5329 for the 2018 tax year, and file a Form 8606 for the 2020 tax year (the year of the $6,500 distribution). Here are some questions:
1. Does a Form 5329 also need to be filed in both 2019 and 2020?
2. Does a Form 8606 need to be filed in 2019?
Our plan is to make a $14,000 contribution to her non-deductible IRA for 2019 & 2020 and subsequently convert the entire IRA balance over to her Roth.
3. Does this interfere with correcting the 2018 excess Roth contribution?
Thanks in advance,
Chris
Permalink Submitted by [email protected] on Fri, 2020-01-10 20:58