I've mistakenly contributed $6000 to 2021 Roth IRA and $7000 to 2022 Roth IRA as I wasn't and will not be within the contribution limits for both years. Upon finding out these errors, I've made two corresponding requests for removal of excess contributions with the brokerage firm. The removals have been processed and resulted in net losses for both contributions (ie. returns with less than $6000 and less than $7000).
I've read posts about filing for removal of excess contributions without 1099-R for the current filing year; however, my situation is a little different in that I made two separate removals for 2021 and 2022. I've contacted a representative of the brokerage firm but she couldn't know for sure if a consolidated 1099-R for both will be issued in 2023 or that two separate ones would be for the removals of 2021 and 2022 respectively. That leads to a few questions for filing this year (2021):
- Should I go ahead and just file for 2021 excluding the removal of 2021 excess contribution, wait for next year 1099-R and amend my 2021 filing?
- If I include the removal of 2021 excess contribution in this year, should I answer "Yes" to "Did you receive 1099-R for 2021" question even though I apparently did not (since the brokerage firm will report that in 2023)? Will it be misleading the IRS if I answer "Yes" and manually type in available data (ie. total distribution of *only* 2021 as Box 1, $0 for Box 2a as non-taxable net loss and code "PJ" for Box 7)? Is there a need for Form 5329 at all since the removal of excess contribution resulted in a net loss?
I requested a filing extension so I have until October 17 to file 2021 taxes.
Thanks much.
