BillM223
Expert Alumni

Get your taxes done using TurboTax

"Does the amended 2021 return need to be received or processed by the IRS before I file my 2022 taxes? "

 

No. Yes, it would be nice in a perfect world, but since you can e-file your 2022 return, but couldn't e-file amended returns (through TurboTax, anyway), just sign and mail the amended return and go ahead and e-file the current return without worrying about arrival dates. Be sure to keep copies of both the amended 2021 and current 2022 returns, in case someone (like the IRS) write you a letter asking about them.

 

"I will keep getting charged the 6% excise fee each year if I do not remediate the excess contribution in some way." Generally true.

 

"should I withdraw it " - it is too late to withdraw the excess for 2021 (that deadline was April 15 (or so) 2022). The only thing you can do is to let it carry over to tax year 2022 (the return you are doing now).

 

Be sure to not contribute any more than $187 ($463-$276) for 2022. This will leave $276 "space" for 2022. The carryover will be charged off as if it were a personal contribution. Unfortunately, the form 8889 does not show this clearly. You will know that this worked when there is no form 5329 showing a penalty in Part VII. 

 

Make sense?

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"