Hello!
I hope someone can help me with this. In February 8, 2022, I made a $6,000 contribution to my Roth IRA account for tax year 2021. I was looking into my retirement accounts and I realized that I may have over contributed to my Roth IRA for tax year 2021 by $460 (I hope I calculated this correctly). My MAGI was $126,150 for tax year 2021. At the time of filing my taxes I did notify my account that I made a $6,000 contribution to my Roth IRA for tax year 2021 so I am not sure why he did not warn me about the over contribution before filing for tax year 2021. That said, what are my options to correct this? I did some research online. I think my best option is to withdrawn the over contribution of $460 before the October 15, 2022 deadline. I will need to withdrawn contributions and earnings before the October 15, 2022 deadline. I did the calculations for earnings. I used the following formula: Net Income = Excess Contribution * ACB -AOB/AOB
AOB = Adjusted Opening Balance
ACB = Adjusted Closing Balance
AOB = Roth IRA balance before $6,000 contribution made on 2/8/2022 + $6,000 contribution. This represents the balance of my Roth IRA account as of 2/7/2022 = $62,000 + $6,000 (contribution made on 2/8/2022) = $68,000
AOC = Roth IRA balance the day I withdraw the excess contributions = $63,000
Net Income = Excess Contribution * ACB -AOB/AOB
-$34 = $460 * (($63,000-$68,000)/$68,000)
If my calculations are correct then earnings are negative so I only need to withdrawn the excess contribution of $460 from my Roth IRA before the 10/15/2022 deadline.
If I withdrawn only the excess contribution, I will not incur any fees or penalties for withdrawing this amount from my Roth IRA. Is this correct?
What are the next steps? Do I need to file an amendment? I think the answer is no since I did not withdrawn any earnings. If yes, when do I need to file an amendment by? What is the deadline? Also, what parts of the amendment need to be completed? What information do I need to completed on the amendment?
I greatly appreciate any and all insights/guidance.
TA_NYC
