Get your taxes done using TurboTax

1. Generally, you do not need to enter the Roth excess contribution on your 2021 return during the IRA interview if you removed it before the due date  (if you entered it you would need to enter that you removed it on the penalty screen and TurboTax won't fill out Form 5329 part IV).  Please add the 2022 Form 1099-R with codes J and P to report the earnings (TurboTax will fill out part I of Form 5329).

2. In this case, it will be best to enter your total Roth contribution for 2021 on your 2021 tax return IRA contribution interview, then enter on the penalty screen the amount of contribution withdrawn by the due date (ignore the earnings for this entry). If you had an excess contribution because of the increased MAGI TurboTax will calculate the 6% penalty on Form 5329 part IV (in addition to the penalty for the 2020 and 2019 excess).

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. Enter your Roth contributions for 2021
5. On the "Do you have any Excess Roth Contributions" answer "Yes"
6. On the "Enter Excess Contributions" screen enter the total excess contribution from 2020 and 2019
7. Continue until the Penalty screen and enter the 2021 excess contribution amount removed by the due date (ignore earnings or losses for this entry).

Yes, if you are able to make Roth IRA contributions for 2022 then you can apply the 2021 excess to 2022 to absorb the excess. Please follow these steps on your 2022 tax return:

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. Enter your Roth contributions for 2022
5. On the "Do you have any Excess Roth Contributions" answer "Yes"
6. On the "Enter Excess Contributions" screen enter the total excess contribution from 2021, 2020, and 2019.
7. On the "How Much Excess to 2022?" screen enter how much of the 2021 excess you want to apply to 2022.

@sridharm