Hi,
Got two separate questions.
First question:
I am hoping to amend my 2021 tax returns since I have received my 1099-R for my excess Roth IRA contribution. I withdrew my excess prior to the tax deadline so in theory, I should not be penalized the 6%. However, the problem I am running into is that my initial excess contribution was $6000. My withdrawal was only $3591(PJ) because of net loss, and Turbo Tax is still calculating the 6% on the "remaining" $2409 that I did not withdraw. It was a loss, so there is no $2409 to withdraw. How do I indicate that on my amendment form?
Second question:
I had an excess contribution to my Roth IRA in 2020 and didn't learn about the issue until 2022, so I withdrew the amount that I was advised on - $3290 (which was supposedly the full amount that I needed to withdraw). However, my brokerage company classified it as a J - early withdrawal because they said it has been too long after the deadline for it to be classified as PJ. So what are the implications?
- Does that mean I shouldn't be penalized the 6% on the $3290 for two years? I think I was.
- Does this now become a 1x 10% taxable amount that I would include in this year's tax returns?
- Am I being penalized on both ends, the 6% and 10%?
- Is it even a thing to not be able to classify it as PJ because "too much time has passed"? If not, is there a way to override that?
Thank you in advance.
