Amend 1040 from Separate to Joint Return to Raise Roth IRA Contribution Limits
I just picked up a new married client. In 2018 and 2020 they each contributed $6,000 to a Roth IRA but filed separate federal and state tax returns thus their contribution limit is $0. Can they amend and file a joint return for the open years to raise their contribution limit for 2018 and 2020 or are they not permitted to amend and be required to pay the excise tax on the excess Roth IRA contributions?
Permalink Submitted by Alan - IRA critic on Fri, 2021-10-22 16:47
They can amend to joint returns for those years and that will erase the excess Roth contributions providing that their MFJ MAGI for the respective years is not also too high for a Roth contribution. If any excise tax that would be erased has been paid, they should get refunds.