I need some help with figuring out how to fix the exceeded Roth IRA contributions I made in 2021 and 2022. I have not yet taken any action yet as I'm trying to figure out the next steps.
Summary:
- 2021: Made excess contribution of $1,764 (exceeding reduced Roth IRA limit)
- 2022: Made excess contribution of $148.4 (exceeding reduced Roth IRA limit)
- 2023: Did not quality for any the Roth IRA contribution (no contributions were made)
Both of these were missed in last 3 years of tax returns.
Questions:
- How much should I be withdrawing now in 2024? Would it be ($1,764 + $148.4) + earnings?
- Can I withdraw this back into my savings? I didn't quality for any Roth IRA contribution for 2023 to roll over.
- How would I calculate the 6% penalty for the two excess contributions over each of the years?
- Is the 6% penalty on the contribution + earning?
- Do I need to pay penalty for 2023?
- ex. For 2022 Form 5329, I'll have to pay 6% on the 2021 + 2022 excess ($114.74 not including earning)
- Will a previous year's From 5329 covers both excess contributions?
- ex. one 2021 Form 5329 for 2021's excess, and one 2022 Form 5329 to cover 2021 + 2022's excess.
- Would I need to fill out one for 2023?
- Can these forms (and penalty) be submitted (and paid) directly from TurboTax? I still have the previous versions.
- I read that once I withdraw the excess contributions, I would receive the 2024 1099-R the following year (2025). I think this cuts close into the 3 year deadline of amending tax returns (for 2021's). Is there a way to manually fill out the 1099-R on TurboTax? How should the fields be filled?
