Excess Roth IRA contributions after my account was liquidated/closed.

Submitted by J S on Wed, 2024-02-14 15:01

I liquidated my Roth IRA then realized i made excess contributions (used unearned income) for several years. I did this after i was retired and didn’t realize i couldn’t use social security money. Should follow the normal procedure and file 5329s and pay the 6% excise tax for each year the excess was in even though the account was liquidated.



Submitted by Alan - IRA critic on Wed, 2024-02-14 21:56

When did you close that account, and do you have other Roth accounts?

Submitted by J S on Thu, 2024-02-15 01:50

No other roths closed 25 Jan 22

Submitted by Alan - IRA critic on Thu, 2024-02-15 15:25

Then the last year of an excise would have been 2021. Your final 5329 in 2022 will show a 0 balance for any Roth IRA as of the end of 2022, and there will be no excise due for 2022. Total Roth closure corrects the excess.

Submitted by J S on Thu, 2024-02-15 16:06

Great. My main concern was that because my account was already closed the IRS would not accept the 6% and their would be reprucussions. But sounds like i need to just pay the 6% using 5329’s for every year the excess remained in the roth .  Is this correct. 

Submitted by Alan - IRA critic on Thu, 2024-02-15 19:30

Yes. 

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