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Get your taxes done using TurboTax
No, you don't have to pay the 6% penalty on your 2022 tax return because you removed the excess in 2022. You should have the 2020 excess on line 18 of Form 5329 and then when you enter your Form 1099-R with code J for the regular distribution then this will show up on line 20 of Form 5329 and therefore erase the excess contribution.
You will include the 2020 excess contribution for the net contributions prior to 2022 (but do not include the excess contribution for 2021 that was removed by the due date of the 2021 return).
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March 26, 2023
12:39 PM