Excess Contributions (5498)
Good Afternoon,
Does the the (correction of) an excess IRA contribution require a new 5498, reporting the updated contribution amount?
Thank you
Good Afternoon,
Does the the (correction of) an excess IRA contribution require a new 5498, reporting the updated contribution amount?
Thank you
Permalink Submitted by Alan - IRA critic on Wed, 2013-02-27 00:02
No. The tracking mechanism for this is the 1099R coded to show a corrective distribution has been made. But the combination is not always obvious. For example, if a contribution was removed that had a loss, the 1099R would not differentiate between a partial corrective distribution with a loss vrs a full corrective distribution with a different loss. This is why the IRS requests an explantory statement including the portion of a contribution that was returned,