Hello,
I need help with how to report a scenario. Husband and wife both age 72. Husband contributed 7k into deductible IRA in April 2021 and then did a $6,600 QCD in December 2021. Finding out now that both can not be accomplished in the same year from the same taxpayer. The $6,600 is either going to be taxable or the IRA contribution needs to be withdrawn as an excess contribution. The gains on the IRA contribution are $296.78.
Wife also has an IRA and has not made any 2021 contributions. I'm thinking the easiest scenario is to withdraw the 7k from the husband's IRA and place it in the wife's. This allows for the deduction and the QCD on their MFJ return. My main question is how does this get reported on the 2021 tax return and does the couple need to expect any tax further tax reporting for their 2022 return next year?
Any help would be appreciated!
