I need some help with calculating the penalty for excess contributions to the Roth IRA. I've used TurboTax to amend tax returns where the excess contributions were made but IRS requested an addtional payment, on top of what I paid based on amendments filed in TurboTax. I would like to double check these calculations and understand if and where there was a mistake.
Here is my situation:
1. In 2021, 2022 and 2023 I exceeded the income limit for contributing to Roth IRA. Nevertheless, I made full contributions in each of these years: $6,000 in 2021, $6,000 in 2022 and $6500 in 2023.
2. After filing 2023 return I realized that I was not eligible to contribute to Roth IRA in 2021 - 2023. After 4/15/2024 but before the extended filing deadline, 10/15/2024, I removed all these contributions and filed amended returns for 2021, 2022 and 2023.
3. The penalty for 2021 is 6% of $6,000 + interests = $360 + interests
4. The penalty for 2022 is 6% of $12,000 + interests = $720 + interests
What is the expected penalty for 2023? Since the Roth IRA contribution for 2023 has been removed before 10/15/2024 then I expect that it would not be subject to the penalty. However, I probably still owe 2023 penalty for 2021 and 2022 contributions which would be again $720 + interests. Is this correct?
I would appreciate any help with this.
