@fluxquantum94 wrote:
Based on what I understand from my exchange earlier in the thread - Because you had excess contributions in tax year 2021, even if you removed it before the tax filing deadline in 2022, you are still subject to the penalty of 6% for tax year 2021 because that 2021 money was not taken out on or before 12-31-2021. I had a similar frustrating situation where in tax year 2020 I had an excess contribution and didn’t know it carried over in 2021, so I’m paying for two years of penalties and finally now removing it this year so that I’m not penalized a third time for the 2022 tax year.
No. You have until until April 15 2022 to remove the 2021 excess or Oct 15 2022 if an extension is filed before Apr 15.
If the 6% penalty is there then the excess was not removed from the IRA contribution interview.
A *2020* excess had to be removed by May 17 (extended date because of COVID) or Oct 15 2021 if an extension was filed.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
