Hi,
- In 2020 I made $4,000 of excess contributions to a ROTH IRA.
- In 2021 I made $500 of excess contributions to a ROTH IRA.
- In April 2022 I realized my mistakes.
- In April 2022 I received a filing extension to October 2022.
- Later in April 2022 I withdrew the $4,000 excess contribution and earnings, 1099-R (Code J).
- Later in April 2022 I withdrew the $500 excess contribution and earnings, 1099-R (Code JP).
- Now I am trying to correct my taxes for 2020-2022.
- I am <59.5 years old.
I have been referencing this thread which is a similar situation: Similar Situation
Here is what I think I need to do:
- Pay 6% penalty on excess $4,000 2020 contributions by submitting Form 5329 amending 2020 taxes.
I am confused as to what else I need to do:
- Since I withdrew all excess contributions before my 2021 extension tax date of October 2022, are either the $4,000 2020 excess contributions or $500 2021 excess contributions subject to the 6% penalty?
- Do I report the 2022 1099-Rs showing the withdrawals in 2021 or 2022? This is where I would pay the 10% early withdrawal penalty and income tax on the earnings?
Thank you for your time,
DK
Edit: Changed $3,800 to $4,000 - I'm using approximate values.
