Hey folks, I was hoping to get your help with dealing with multiple excess Roth IRA contributions and withdrawals. I've gone through a ton of other forum posts and have a general idea of what to do, but I'm hoping you can double check what I've done.

In particular, I'm looking for double-checking of the following:

• My 2023 1099-R form: I will only get my 2023 1099-R form next year but I want to include it in my 2022 tax return this year so I am forced to guess what it will look like
• My 2022 tax return: I'm not sure what exactly to enter for many of the TurboTax questions
  (eg. Do I enter my ACTUAL contribution (including the excess) or what I was SUPPOSED to contribute (without the excess))

For your convenience, I've added both a brief summary and a detailed timeline below:

Summary

• 2021 Roth IRA
• April 2022: Made excess contribution of $3,050
• April 2022: Withdrew $3,050 + earnings of $15.36
• 2022 Roth IRA:
• April 2022: Made excess contribution of $6,000
• April 2022: Withdrew $1,450 + earnings of $7.30
• April 2023: Withdrew $4,550 - loss of $85.69
• 2022 1099-R form: Code 8J
• 2023 1099-R form: Code PJ
• 2021 Tax Return:
• Reported what I was supposed to contribute to 2021 Roth IRA
• No 1099-R form
• 2022 Tax Return:
• Reported what I was supposed to contribute to 2022 Roth IRA
• Reported $3,050 actual excess contribution to 2021 Roth IRA
• Added both 2022 and 2023 1099-R forms

Detailed Timeline

2022

Excess Contribution

On April 12 2022, I made the following Roth IRA contributions:

• 2021 Roth IRA: Contributed $6,000
• 2022 Roth IRA: Contributed $6,000

Withdrawal

Shortly afterwards, I realized that, based on my 2021 income, my 2021 contribution was too high so I withdrew the excess from my 2021 contribution. Obviously I didn't know my 2022 income yet but, to be safe, I compared my 2021 income to the 2022 Roth IRA contribution limits and preemptively made a partial withdrawal from my 2022 contribution as well.

i.e. On April 14 2022, I made the following Roth IRA withdrawals:

• 2021 Roth IRA:
• Requested withdrawal of $3,050
• After including earnings of $15.36, received distribution of $3,065.36
• 2022 Roth IRA:
• Requested withdrawal of $1,450
• After including earnings of $7.30, received distribution of $1,457.30

Thus, in 2022, I received a total distribution of $4,522.66 (including total earnings of $22.66)

2021 Tax Return

In April 2022, I filed my 2021 tax return with the following information:

• 2021 Roth IRA contribution: $2,950
• Note that I entered what I should have contributed, not what I actually contributed
• Excess contribution for prior years: $0
• 1099-R form: None

2023

Withdrawal

Next year, after getting my final 2022 income, I realized that actually I was not allowed to contribute anything to my 2022 Roth IRA so I made another withdrawal to remove the rest of it.

i.e. On April 15 2023, I made the following Roth IRA withdrawal:

• 2022 Roth IRA:
• Requested withdrawal of $4,550
• After including loss of $85.69, received distribution of $4,464.31

2022 Tax Return

I haven't filed this yet (extended deadline to Oct 16 2023), but this is what I have entered so far:

• Roth IRA contributions from prior years: (includes the $2,950 I should have contributed to the 2021 Roth IRA, not what I actually contributed)
• 2022 Roth IRA contribution: $0
• Note that I entered what I should have contributed, not what I actually contributed
• Excess contribution for prior years: $3,050
• Note that this is the excess I actually contributed to the 2021 Roth IRA only
• 1099-R forms:
• 2022 1099-R form:
• Issued in Jan 2023
• Total distribution (box 1): $4,522.66
• Total taxable earnings (box 2a): $22.66
• Distribution code (box 7): 8J
• 2023 1099-R form:
• Has NOT been issued yet, so I am just guessing that this is what it will look like!
• Total distribution (box 1): $4,464.31
• Total taxable earnings (box 2a): $0
• Distribution code (box 7): PJ
• In the end, TurboTax added $23 (presumably rounded up from my $22.66 total earnings) to my taxable income.
• Note that it did not seem to charge me any additional 10% early withdrawal penalty on the earnings