Tax Tips How to Handle Excess Contributions to Retirement Plans Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxLee Published Feb 8, 2007 1 min read Do you have an IRA or a Roth IRA or a Qualified Pension Plan and contributed too much to it? For an IRA or Roth IRA, this could occur if: o You have earned income less than the amount contributed OR o You contributed more than the maximum allowed for the year ($4,000 for 2007 ($5,000 maximum if you are age 50 or older) OR o You have the contribution limited by your federal adjusted gross income. For a Qualified Plan, this could occur if: o You have more than one 401(k) plan OR o Fall into the highly compensated individual rules So you know that you’ve over contributed and you’ve taken the money back out of the retirement plan. How do you handle it on your tax return? Well, it depends! Did you take out the money before or after your tax return due date? For your contribution for 2007, did you take it out in 2007 or 2008? What does the 1099-R(s) that you received look like? How do you enter the 1099-R in the TurboTax Interview? Previous Post What Is a Roth IRA Basis? (Complete Guide) Next Post Donating Your Vehicle to a Charity Written by TurboTaxLee More from TurboTaxLee 0 responses to “How to Handle Excess Contributions to Retirement Plans” I took a standard $10000, withdrawal from my IRA but replaced it within 60 days. I was informed that this amount is therefore, not taxable. The amount appears on my 1099 as taxable income. Where do I enter the $10000 I paid back? Reply Leave a ReplyCancel reply Browse Related Articles Self-Employed Meet Moira Tax Planning TurboTax Enables Refund Advance to Taxpayers Investments Tax Benefits of Real Estate Investing Self-Employed Business Tax Checklist: What You’ll Need When Filing Uncategorized What Is Deferred Compensation & How Is It Taxed? Investments How Does an Inherited IRA Work? Work Choosing Your Business Structure: 5 Types of Businesses… Tax Deductions and Credits Are HOA Fees Tax Deductible? What You Need to Know Crypto Understanding Crypto and Capital Gains Work 7 Things You Need to Know About the New Business Report…
I took a standard $10000, withdrawal from my IRA but replaced it within 60 days. I was informed that this amount is therefore, not taxable. The amount appears on my 1099 as taxable income. Where do I enter the $10000 I paid back? Reply