@71YTA31 wrote:
That is incorrect. If you file with the excess contribution (by May 17th), the penalty applies to the tax return. The whole purpose of the amendment is to report the recharacterization and remove the penalty and receive the penalized amount as a refund.
As I said, if the original return had the penalty then amending will remove it and apply it to the refund.
Also as I alluded to, amend tomorrow if you want and would feel better (amended returns normally take 4 months to process, but with the huge IRS backlog because of COVID they are now taking 6-8 months.) but if the 1099-R is not what you expect it to be and you need to amended again then that will take a year or more.
Personally, I would wait for the 1099-R, but that is up to you.
**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.**
