Thanks @dmertz.
I'm sorry, I just to be clear: Here's the concern (which likely you got right and I'm confused)
- 2021 MAGI with property AND salary = $250,000 (married filing jointly)
- 2021 Roth contribution (prior to the sale but the same year) = $5,000
- 2022 MAGI probably much closer to $90,000
- 2022 Roth contribution = $5,000
So
- Is the current year's Roth limit based on the previous years filed MAGI? If so, I supposed I could simply reverse the Roth contribution (an investment company - perhaps it's possible).
- If instead the contribution limit is based on same year as the MAGI (2021), and if I understand correctly, I should leave the contribution for 2022 (well under the threshold this year) and I should file the 2021 Form 5329, pay the 6% penalty on the full $5k (so $300) from 2021? And can that wait until I file my 2022 return or does that need to be filed immediately?
