@mam62tt wrote:
Thanks for the clarification. My understanding as well is that you will not be subject to the 6% penalty if you remove the excess Roth IRA contribution prior to the tax filing date. I have done that. Regarding the removal of the excess contribution in the IRA interview, are you saying to not enter anything regarding the Roth IRA contribution and just fill out the substitute 1099-R only? Should I answer NO to the question “Did you make a Roth IRA contribution for 2021? “.
Reading through all this it seems it might be better to not enter anything regarding the excess Roth IRA contribution in my 2021 tax filing and just wait until I file my 2022 taxes and use the 1099-R my financial institution will send me. I had a loss so there are no taxable earnings to report. Is this an option? What is the advantage to reporting using a substitute 1099-R for my 2021 tax filing now?
Thanks for you assistance.
If you removed it then that is the same as never making any contribution.
If you had a loss the box 2a should be zero.
You do NOT use a substitute 1099-R, just a 1099-R.
**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.**
