Hi,
I am in the same situation due to income over the MGI in last year (2021).
Account A (mine)
Contributed 6k excess in 2021 Roth IRA (have gains)
Contributed 1k excess in 2022 Roth IRA (have loss)
Account B (my wife)
Contributed 6k excess in 2021 Roth IRA (have loss)
Contributed 1k excess in 2022 Roth IRA (have loss)
I have the financial institution remove both excess contributions i.e. 6k from 2021 and 1k from 2022.
I have not filed my taxes yet, my clarification question is when I report taxes for 2021 now, i would only report the access with-drawl (6k) for 2021 via the 1099-R with P (Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2021) and J (Early Distribution of Roth IRA).
And then in next year tax (2022) , I would report the 1k as excess contribution withdrawal as 1099-R with same codes J (Early Distribution of Roth IRA) and P as it pertains to year tax 2022?
For the 1k I should wait to report it next year tax return as opposed to include it this year tax filling.
For the accounts where this is loss do I need to still report it or skip the reporting it?
Can you please confirm my understanding?
Thanks
