Excess Roth Contribution in 2022. Carry forward.

[Paulsoncall]

In 2022 I contributed $1600 above my limit to a Roth IRA because I switched brokers in the middle of the year and completely forgot about the original contribution.  It's January of 2024 now so I can no longer remove the excess and I want to fix this and just contribute less than my allowed amount in 2024.  Do I need to file an amended return for both 2022 and 2023, or do I just need to file an amended return for 2022?  I just discovered this when looking through my tax records and kicking myself for not catching this earlier.  I understand that I can just contribute less this year and pay 6% tax on the excess in 2022 and 2023, but I'm confused on how I report this.  I've tried submitted an amended return for 2022 using TurboTax, but for some reason it is calculating a total excess of $3200 on the 5329 form even though I only entered $1600 as my excess.  Anyone have advice on this?

[Anonymous_]

@dmertz?

[fanfare]

2024 1040 is where you will report the distribution.

Just ask the custodian for a plain distribution, not a "return of excess".

@Paulsoncall 

[fanfare]

If you use your allowed 2023 contribution to offset the excess, then you still need to amend 2023 to attach 2023 Form 5329 to show that but there is no penalty.

@Paulsoncall 

[fanfare]

get Form 1040-X from IRS website and mail it in with your 2023 Form 5329 which you can also get in editable PDF.

Do not include your old 1040 nor your revised 1040 because the Form 1040-X reflects any changes there and becomes your new tax return.
Note: When you are not changing any dollar amounts on your amended tax return, you can leave all the lines 1-23 EMPTY.

Assuming your allowed contribution is at least as great as the excess, no dollar amounts will be changing.

@Paulsoncall