Greetings - A new Roth IRA was funded in April 2022 for prior year 2021.
Unfortunately the deadline to process a 2021 Return of Excess Contribution was October 17th, 2022.
What alternative distribution options are available to me to avoid ongoing penalty for 2022, 2023 and later ?
Background :
As I was preparing to file on April 15th Turbo Tax warned of excess contribution so I requested extension of had subsequently requested the trustee to execute a refund of the excess amount. Subsequently I filed the return before Oct 2022 without any penalties.
Unfortunately, On Dec 30th 2022, I received a W2C - with some additional income due to employers error. I filed a 2021 Amendment this year Jan 2023. Turbo Tax reported an excess contribution due to this minor increase in income that was subject to 6% penalty for 2021 and also generated the form 5329.
As of Jan 26, 2023 I have not yet received the 1099-R for the excess 2021 Roth contribution refund taken out in 2022.
Thank you !
Thank you !
