I made a contribution to my traditional IRA in 2021. It was a stock litigation lawsuit settlement check. Apparently since I am over 72, I am not allowed to make any IRA contributions; this should have been flagged by my IRA broker.
All the instructions that I have found in Turbo Tax are very confusing. I apparently need to withdraw the contribution before tax filing date, 4/18/2022, no problem. And pay taxes in my 2021 return on the disallowed contribution or on the 'earnings' only ?
Then wait for a 1099-R form in 2022, related to the withdrawal? After which I file an amended 2021 tax return? Or create a fictitious 2021 1099-R (in addition to my real 1099-R for my 2021 MRD), for the 2022 withdrawal?
