Hi all, I have a particularly unique situation with regards to my excess Roth IRA Contributions:
1. For Tax Year 2021, I contributed an excess of $1500 into my Roth IRA. I filed and paid the penalty. However, I did NOT withdraw the excess.
2. For Tax Year 2022 (not yet filed/submitted, in "review" and a draft, as of this writing), TurboTax reported that my modified adjusted gross income (MAGI) is over the Roth limit, which means that the entire $3200 contribution I made for 2022 is in excess.
My question:
Do I withdraw both the $1500 I paid in excess in 2021 *and* the $3200? Or do I just withdraw the $3200?
An added complication/context is that I moved my Roth IRA from one institution to another in December. For some reason, I don't see any tax forms for the 2022 tax year from the former institution. (I had contributed $300 in November and after moving my Roth IRA to a different institution, I contributed $2900 in December).
Towards the end of the Roth IRA section in filing for my federal return, TurboTax is saying I should withdraw the $3200, but it doesn't explicitly say to remove the previous year's $1500. (In an earlier, previous step - "[Enter] Your Excess Roth IRA contribution in previous years" - I entered the $1500 excess here - it has a footnote saying "Remember that excess contributions should be withdrawn to avoid additional tax"). Thank you in advance for any advice and expertise!
