In 2023, I started a new job that paid a lot more money so I made sure I maxed-out the ROTH IRA deposit. What I forgot to pay attention to was the combination of the sign-on/relocation bonus and the new salary put me past the upper income limit on ROTH deposits. TurboTax 2023 informed me of this when doing the 2023 return so I immediately withdrew the deposit plus the gains in the first quarter of 2024. Now I just completed entering all the information for the 2024 tax year in TurboTax 2024 and it told me that the 2023 Federal Return needs to be amended. The 2023 return knows I put the $7500 in and the 2024 return knows I withdrew the deposit and gains in 2024. The question is "Do I really need to amend the 2023 return since everything appears to be accounted for?" About the only unknown I see is that the gains that were refunded cover all money made starting with the first of the 2023 deposits all the way through 1st quarter of 2024 so I don't know how much of the gains were really accrued in 2023. TurboTax did not say the State return also requires amending.
