aya_ttb
Level 1

IRA Withdrawal Mistake in 2021 because of Excess Contribution in 2020

My situation is a little complicated... So when I was filing 2020 tax, I just learned that I had 6k in Roth and 6k in IRA. Without researching on the procedure, I simply withdrew 6k directly from IRA. Then on the 2020 tax filing, I reported 6k for Roth and 0 for IRA . I thought it was alright since I was just taking after-tax cash deposit out to an after-tax account within a month. Now for the 2021 filing, I got a 1099-R saying that I had an early distribution of 6k from IRA. I already have 5k currently in Roth. I am under 59 1/2 years old.

So in clear summary, this is the situation now:

2020 - Roth: 6k, IRA: 6k

2021 - Roth: 5k, IRA: 1k

2022 - Roth: 2k, IRA: 0

>> withdraw 6k from IRA in 2021directly without specifying from year 2020

 

My questions are:

  1. What is the best way to file this with the least penalty?

  2. Do I have to amend 2020?

  3. Would the rollover be an option for me? 

  4. I actually called the bank to take out 1k from Roth for 2021 for excess contribution...but I saw that my 5498 form is still showing 6k the original contribution. Is that a mistake? 

 

Many thanks!