1. In 2012, I open a Roth IRA at the bank and deposit /contribute $16,500 in a mutual funds account. It was $5,000 Roth contribution limit in 2012. I didn't know the rule at that time.
2. In 2018, 2020 and 2021, I made full contributions in those years: $6,500 in 2018, $7,000 in 2020 and $7,000 in 2021. I exceeded the income limit for contributing to Roth IRA. Last year, on April 17, 2024, I made a distribution for 2018, 2020 and 2021 total of $20,500 without the distribution with lost and earnings. How to deal with the lost and earnings? I am over 59 1/2 years old to make the distribution at that time.
3. Getting ready for 2024 Tax Return.
I received 1099-R from 2018, 2020 and 2021 distribution to report in the Tax Return. How to calculate the penalty? What about the lost and earning? I am trying to avoid additional late charges.
How to deal with 2012 excess Roth contribution? I know I must make the distribution for 2012. What is the distribution amount to notify the bank? Is it today's ending balance with the 13 years (2012-2025) interest, dividend and lost? In other words, should I close the Roth IRA account? What is the Roth distribution amount?
In addition, how to calculate the penalty? Lost and earnings?
Thanks in advance!
