Thank you- I really appreciate the response. I was not aware of section 301.9100-2 of the tax code. In my case, I checked the box that excess contributions were withdrawn by the tax return due date, so the amount was taxed as income and no penalties were assessed. I see now that this was not correct. It seems I should have reflected the excess contribution, paid the 6% penalty, and then submitted an amended return referencing section 301.9100-2 which would have eliminated the penalty and treated the excess as taxable income.
To unwind my mistake and make everything correct, I will have to amend my return to add back the excess contribution withdraw, and then submit another amended return to include the withdraw with a note referencing section 301.9100-2 of the tax code. Ultimately, the dollars paid to the IRS are the same either way, but the documentation is not correct currently. Am I understanding this right?
If there is no change in the amount due, it does not seem like a worthwhile endeavor at this point.
