@MinhT1 - thank you
I have a few more questions as I am a novice to this.
How do I know what the "excess" contribution is???
- Is it safe to assume the entire $2400 is the excess I should withdraw plus the pennies in extra earning?
- Above will essentially zero out the ROTH IRA and close the account as it will have a zero balance.
I am confused with regards to 2025 form 1099-R .
Is this to be reported alongside my 2024 taxes?? Or is this for next year?? The earning are essentially pennies so I am not too worried about reporting anything, I just need to understand how to do it?
You also mention "When entering this form 1099-R, make sure to indicate that the year on the form is 2025, as this is a replica of the form you will receive for year 2025 in 2026." - What does this mean actually? Why would I receive a form in 2026 for year 2025 if I empty the balance of the ROTH IRA now??
FYI My brokerage house informed me I can fill out a form and they will close the account and create the 1099-R for 2025. Does this mean I do not need to do anything for the 2024 tax filing year??? (I report nothing for 2024 and wait until next year to report 1099R for 2025??)
Sorry I am a bit confused and regret opening this stupid account now.
