Confused about filing a Form 5329 with my return this year

jz68

I messed up and continued contributing to my Roth IRA in 2019 and 2024 even though I was not working. I filed the Form 5329 for 2019, 2020, 2021, 2022, 2023 back in November of last year and was left with $217 that still needed to be absorbed in the 2024 tax year. I've also already sent payment to the IRS for each year.

I was told that I would need to file one last Form 5329 with my return this year that showed the final $217 being absorbed. I also had to correct my 2024 contributions which resulted in a taxable distribution. When I enter the info from the 1099-R received from Vanguard, that generates a Form 5329 with Part 1 filled out.

Here's my confusion….. I still have to show on the Form 5329 that I absorbed the remaining $217 dollars but have no way of doing so as the form is automatically generated by the info it is fed. Do I need to fill out a second Form 5329 and mail it in as I did with the previous years or should I just download my forms, add the information to Part 4 of the form and send my entire return by USPS?

MatthewD

Hi Jz68,

The FreeTaxUSA software can generate a Form 5329 in situations like this. On your account you need to go to the Deductions/Credits menu and select the option IRA Contributions. Answer the questions relating to, "Excess IRA Contributions", continue to the next page and enter amounts relating to your 2023 return. When you have all the required information, the Form 5329 should generate on your account and you may e-file your return.

You may want to check with Support if you have additional questions and information.

jz68

Great, thanks for the answer! I've not actually done it all the way through yet as I am waiting on a 1099-INT from my bank.