Yes, you can send me a token for the 2021 return.
Yes, the earnings from the excess contribution are taxable and increase your MAGI. Therefore, if you only removed a part of the contribution, it can create another excess. Therefore, it is usually best to remove some extra contributions to avoid this. Yes, you can absorb the 2021 excess on your 2022 tax return since you can still make Roth contributions for 2022.
On your 2022 tax return, you will add the new excess to the other excess:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- On the "Do you have any Excess Roth Contributions" answer "Yes"
- On the "Enter Excess Contributions" screen add the new excess to the already entered excess
- On the "How Much Excess to 2022?" screen enter the remaining excess listed to be absorbed in 2022.
@sridharm
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