If I contributed $5,500 to each of my two Roth IRA accounts, will I owe a penalty?
Yes. You’re limited to total Roth IRA contributions for the year that are the lesser of:
- 100% of your compensation
- $5,500 to $6,500 if age 50 or older. If you contribute more than the amount you’re allowed, you’ll pay a 6% excise tax.
To avoid the 6% excise tax, contact your IRA plan administrator to request either of these:
- Redesignate the excess IRA contributions to the 2019 tax year. You can only do this if you make the contribution after year-end and before the due date of the return.
- Withdraw the excess contributions and their earnings. You must do either by your return’s due date.
Learn more about form CP92, why you received it, and how to handle an IRS levy with help from the tax experts at H&R Block.
Is the IRS auditing your employment tax returns? Read the IRS definition and get more insight from the tax experts at H&R Block.
The IRS made a final determination on your innocent spouse claim. Learn more about IRS letter 3279C and your options to address it from the experts at H&R Block.
If you owe tax debt for another tax year, your refund can be taken to pay the tax debt. Learn more about the Treasury Offset Program from H&R Block.