anyone know how to solve my tax error?

[puppylove64]

I think you need to call the investment folks. It wasn't a regular distribution. You need to make sure they know you contributed too much in 2014. They have a method for dealing with this type of thinG

[craftyone]

Can you call the bank and have the change the year? I would think you can just move a portion of money to 2015 from 2014.

[cjeanette]

Apr 17, 2015 16:30:53 GMT -5 craftyone said:

Can you call the bank and have the change the year? I would think you can just move a portion of money to 2015 from 2014.

You cannot do this.

Gains/losses have to be calculated and you have to remove the money.

Now once it's out you can cut a new check for 2015 if you want.

[cjeanette]

Apr 17, 2015 13:59:10 GMT -5 @bluesky said:

Of course I waited until 4/14 to do our taxes, heh..  I did it a day early is the way I see it!  Of course it has it's consequences.  I had to rush to get to a meeting and had to submit my taxes even though I possibly made a possibly big error.

We overfunded our roth Ira's.  I accidentally funded them at two different banks.  Don't ask how.  I guess it's a good problem to have?  Anyway, turbo tax caught it and I panicked because I was out of time and I tried to call the banks to get some help but of course no luck getting through when you wait til 4/14.  So turbo tax said something about how you should withdrawal the excess otherwise you'll get charged a fine every single year until fixed.  But withdrawing early got me a 10% fine, and again this was for me AND dh.  I did it anyway in panic mode.  I then had to sell the investments and hope that it would sell fast enough to get the money out by 4/15.  According to the bank, it looks like the money didn't get transferred out until 4/16.  On turbo tax, it asked if I withdrew the excess and I said yes and stated the amount.  Now I may have lied because I don't think it settled until 4/16.  

Soooo, I may have lied to turbo tax, I'm not sure.
I withdrew our excess and now will get a 10% penalty.  

Is there some way to fix this mess further or do I just pay the consequences next tax season?  TIA!

There is no 10% penalty when removing an excess contribution. It's not an early withdrawal.

[regina22]

There is a 10% penalty on the profits made from the contribution. So if she contributed an extra $5500, but by the time she withdrew it the total went up to $5800, she would owe taxes and a 10% penalty on the $300. But since the withdrawal was done in 2015 (even though the contribution was for 2014), the tax/penalty will come into play next year when she does her 2015 taxes.

[craftyone]

From what I just read it says you can pull out excess and earnings by the deadline plus extension (aka October 15). Honestly I would call the bank and talk to someone who know the roth's well.

budgeting.thenest.com/tax-implications-contributing-much-roth-ira-25251.html