Thanks Dana, I appreciate the help.
I have done the steps but when I look at Form 5329 that is created, it looks like it is taxing me on the $8,000 contribution, not just on the earnings. In Part IV of the form, on line 25 it calculates 6% of the contribution (the 8k) as tax. (I know I have to pay tax on the earnings.) I said I was withdrawing the 8k + earnings in the program but somehow it is still taxing me?
I am 69. Another thing I don't understand is Line 18 in Part IV of the form. It says "18. Enter your excess contributions from line 24 of your 2023 Form 5329. See instructions. If zero, go to line 23" And the program puts my 8K here.
But I had no Form 5329 in 2023.
Line 23 says "Excess contributions for 2024 (see instructions) ." There is nothing here but this is where I think the my $8,000 Excess should be. The program seems to think I made the excess contribution in 2023.
Should my Corrective Distributions be the 8k excess + earnings?
Thanks very much.
