Hello -
Hoping for some help here. For TY 2022 and 2023, I filed married but separately (MFS) from my wife due to her student loan repayment plan. In those years, I have worked where I contribute into my employer sponsored 401K and a Roth IRA, in addition to my employer contributing to a pension plan. When I first started in this role, I misread the literature from the retirement system manager and opted to contribute to the Roth IRA, but it seems that I was ineligible so I have contributed excessively for CY2022 and CY2023.
For CY2024, I think we are going to file jointly so that those contributions to the Roth IRA will be OK. I spoke with the retirement system manager, and they indicated I couldn't recharacterize 2022 and 2023 contributions/earnings (the contributions are automatically invested into a target fund).
From speaking with local tax preparers, they've indicated that I may or may not need to amend 2022 and 2023 taxes, but I do need to withdraw (and pay the 10% penalty since I am 36), and then pay the 6% penalty on the earnings of those funds, and then get taxed by state/federal income taxes.
Is that all correct and/or do I have any other options at hand? Trying to wrap my head around this all has been difficult.
Thanks for your help.
