@fanfare @guywong
Thank you both for your help! It is sincerely appreciated.
I will proceed with amending the 2022 with the following actions which I will document here in case someone else has a similar issue. My issue was outlined in my original post of this thread.
I will go ahead and prepare and submit an Amended 2022 Tax Return by going into TT and creating a 1099-R for the year 2023. That is, the 1099-R will be a 2023 dated addition.
Box 1 will have the total of the excess contribution ($2900.98) + the earnings (NIA) of $50.19 = $2951.17
Box 2a will be the same total amount of $2951.17 as the entire amount needs to be taxed in 2022.
Box 7 will have a Code of “2 P”. The 2 is because my wife retired in 2022 and so there is an exception to the early distribution even though she is under age 59 1/2. The code P is to denote that the 2023 1009-R is in reference to excess contribution return of the prior year, 2022, and will be taxed as 2022 income.
That should be it, other than the obvious Payer/Payee information which I will fill out.
In the 1040-X section on Notes, I will add both verbiage from the Excess Contribution letter we received informing us of the need to address this amount and the IRS recommended Note for the Amendment which says “Pursuant to 301.9100-2” which draws attention to the 2022 Tax Filing have the automatic (default) extension to Oct. 15, 2023 date since the original 2022 return was filed “Timely” by April 15, 2023. That is, this Amendment falls within the scope and timing of the default extension allowed to correct the 2022 Return as needed here.
That should hopefully do it.
Thanks again to you both
@AMS2022
