Thanks. Reading the thread you sent confuses me as each scenario is different. Just to clarify: I'm withdrawing the entire excess contribution now before tax deadline, my plan administrator said they will issue an earnings letter (if any) in a few days but the 1099R will be issued for 2023. My understanding so far is that I report the earnings and pay tax on them on my 2022 return using Form 8606 and treat the earnings as a distribution from my Roth IRA. Is this correct? If so, I'm probably better off not asking my plan administrator to withhold tax since (I assume) TurboTax will calculate the tax due once I entered the information? If there is a loss on the excess contribution, do I also need to use this form to report loss? I understand my plan administrator will reduce the withdrawal amount by the loss. Also, since I'll be reporting the gain on my 2022 return, I don't report anything when I receive my 2023 1099R from my plan administrator for next year?
Form 5329 instruction says if I withdraw the excess contribution and pay tax on earnings prior to tax deadline, then the excess contribution will be treated as not having been made. Do I then still need to file a Form 5329? Do I fill out my 2022 Roth IRA contribution as 0? I think someone mentioned my plan administrator will issue a corrected Form 5498 for 2022 showing no contribution?
All of these seem so confusing. Thank you again.
