@Mike9241
did you submit your return for 2021 because the 5329 should have been included? If you filed without it you'll need to amend to include the 5329 which will show the 1764 excess subject to the 6% tax
I didn't not. My understanding is that I will need to amend the 2021 tax return with a 1099-R in order to fill out a 5239 and pay the 6% penalty.
the IRS will bill you for any penalties and interest for late payment.
Will I be able to pay for the 6% penalty in TurboTax itself when I amend the return?
For 2023 you must withdraw the excess by 10/15/2024 + earnings on the excess. the earnings will be taxable in 2024. contact the custodian to inform them you're withdrawing excess contributions + earnings and ask them to calculate the earnings.
This was an excess contribution to a Roth IRA so I believe I only need to withdraw the excess contributions from 2021 + 2022 and not any earnings. Based on @fanfare , I have already past the deadline to withdraw by 2023 so I believe I will be also incurring a 6% penalty for 2023 as well.
