Thank you!
Qs:
a) I had done my taxes in TTax online for the past 12/13+ years and never used any CD/software and also, I looked in TTax website where I access/prepare the returns and all three years can be amended online_ I understand what you said about the 5329. That said, how should I have done the 2020 so I could have avoided these amended even though the excesses were returned on time and corrected?
b) Is TTax unable to show the accesses were returned and clear it off the 2020 return? Perhaps it could till after 2021 was done by using the option to add the two corrected 1099Rs (2020 & 2021) on 2021 return instead of the way I did it, creating a 2021 1099R in 2020 return?
c) HYPETHETICAL:
What if I leave the $285 or $360, what have you, and let it carry on and every year pay the $22 tax/year. Then let say at some point when I become "topsoil" (pass away) and my beneficiary receives the Roth and decides to cash it out (assuming he/she is over 59 1/2 to avoid the 10% penalty) what happens to the excess at that time? They get to pay the 6% (again) on that $360 (how would they know of the existence of the excesses unless I tell them) after they cash out the Roth (let say right away and not exercise the 10 yr rule- given he/she is only few years younger than me too), even though there is nothing from the Financial Institution reporting it, since it was corrected?
NOTE:
Doing the forms outside of TTax will cause my continuation of using the TTax and doing my 2023 & following years out of sync, since there would be nothing adjusted in TTax by amending them outside of TTax to show the correction and the $360/$22 tax will still carry over, correct?
Thank you again!
