Hello all! I contributed $2,000 to my Roth IRA, oh which, all had to be removed when I altered my tax plan for 2021 (income too high). I removed all contributions, and earnings, for 2021 by Nov of 2021. By doing this, I know I will avoid the 6% penalty. However, I do have some other questions:
1. Since I removed the contributions and earnings before the tax filing deadline, am I required to pay the additional 10% tax?
2. If the answer to question 1 is "Yes", do I only have to pay it for 2021 (meaning, I don't have to pay it year after year like the 6% penalty if you leave the excess in the account)?
3. Is there any way to avoid the 10% additional tax?
4. Could a recharacterization/conversion from the Roth IRA into a Traditional IRA avoid the additional tax?
Thanks, in advance!
