Deductions & credits

@MichaelG81  Thanks for your reply. I will request the custodian to remove the remaining excess 2021 amount in the Roth IRA that can not be "absorbed" in 2022 and withhold 10% tax.

 

So do I have to manually fill in the 1099-R in the 2022 return for this amount after I request the regular withdrawal from the custodian ?  Will this will generate the line 20 in the 5329  so the penalty will be 0 for 2022 ?  Or I will still have to pay the 2022 6% penalty ?

 

I want to follow the second option you indicated - I do not want to amend the 2022 return in 2024. So when the custodian will give the 1099-R I will report the 10% withholding when I file the 2023 return in 2024.

 

By the way in Feb 2023 I have also received the 1099-R for 2022 with P and J distribution code checked in box 7  from the custodian for the removal of the 2021 (part) excess without penalty before Oct 2022.  This has been imported in the TurboTax but is not part of the filing documents as withholding was 0.

 

Regards