AdamNe
Employee Tax Expert

Get your taxes done using TurboTax

Hello @Cladenstien56 !

 

You have done the first step by removing the excess contributions (and all earnings on those contributions, I assume) from the Roth. 

 

Now, if you just removed the funds in 2022, you cannot go back and remove the 6% penalty from 2020 and 2021. You don't need to amend your return at all, as long as you claimed the excess contributions properly in both years. The only reason one would amend would be if the contributions were removed in the same year before the extended tax return deadline. 

 

What you will need to do is indicate on your 2022 tax return that you have corrected the overcontributions in order to avoid paying the 6% penalty again. You will also have a 1099-R for 2022, and the earnings will be taxable (and may be subject to the 10% penalty for early distributions if you are under 59 1/2). 

 

I hope that helps! 

 

All my best,

Adam, EA

TurboTax Live Expert

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