excess roth now at zero do i still need to do another 5329
So i had an over contribution in 2021 (paid and mailed form 5329), paid the penalty again in 2022 on form 5329 part of my main return, had vanguard to excess contriburtion withdraw. Now we are at the tax year 2023 and I think everything has cleared. Do I still need to do one more 5329 showing its at zero? Do i get a form from Vanguard showing the excess contribution zeroing out?
Permalink Submitted by Alan - IRA critic on Tue, 2024-01-09 22:35
Yes, you need the final 5329, which will show the excess amount from your 2022 5329, and also the distribution you took in 2023 which is subtracted from the 2022 remaining excess to result in no excess remaining. VG does not send a form other than the 1099R you just received. The 5329 forms are totally your responsibility, but the 1099R will show that you cured the excess by taking the distribution of the remaining excess amount.