Hi! I have my facts below on my ROTH IRA. I am hoping to get help and clarity on the following: 1) if my calculated allowed contribution in 2018 is correct; and 2) how much penalties I should pay and the process/forms I should file or amend each year (from 2018 to 2022).
I read similar articles but they are different from my case. I opened ROTH IRA in 2018. For 2018, my MAGI is $124,000 so I calculated allowed contribution and excess contribution. For 2019 and onwards, my MAGIs were above limit so any contributions are excess contributions. Please note of the rounded amounts.
2018 - Contributed $5,500. Allowed contribution based on MAGI of $4,000 and Excess contributions of $1,500. No withdrawal.
2019 - No contribution. No withdrawal.
2020 - Excess contributions of $10,660. Withdrew $1,000 as excess contributions. Received 1099-R with the filled boxes: Box 1 - $1,000; Box 2b - marked x; Box 7 - J.
2021 - Excess contributions of $5,800. Withdrew $11,600 as excess contributions. I received 2 sets of 1099-R in 2021 from my financial institution:
First set - Wrong 1099-R - Box 1 - $11,600; Box 2b - marked x; Box 7 - J. I received and used this in my income tax form before filing deadline on April 18, 2022.
Second set - Corrected 1099-R - Received two 1099- Rs. 1) 1099-R with only filled boxes are: Box 1 1- $5,290 and Box 7 - 8J. 2) 1099-R with only filled boxes: Box 1 - $6,310; Box 2a - $310; Box 7 - PJ. I received this after filing.
2022 - Withdrew the remaining balance of my ROTH IRA $13,400 in May 2022 and is now closed and zero balance.
Total contributions - $21,960; Total withdrawals - $26,000
All my withdrawals should be return of excess contributions except for earnings and allowed contribution (if correctly calculated) in 2018 as early distribution.
Thank you so much.
