It's not working so far.
Steps I took to amend 2022 (not filed)
- started an amendment based on my previous amendment (made a year ago)
- jump to the roth ira section and check the relevant person
- it is not a repayment
- enter 7000 as the contribution
- how much was recharacterized? $0
- did not open before 2022
- the value of the roth on Dec 31 2022 was $0. She contributed to the 2022 roth in Feb 2023.
- notice that income is too high to contribute
- contribution withdrawn before due date of return: $0
- Done with deductions
- I enter amendment message: Reporting excess Roth IRA contribution on $7000
- Amendment return summary: we don't detect any differences between your original return and your amended return.
It didn't calculate a penalty? It does state the amount on one of the step by step pages, but ttax itself lists nothing (fed and state boxes at the top) owing to IRS. You mentioned form 5329; I have a 5329-S. It shows $7000 excess contribution.
I thought ttax would compute the penalty and I'd send the amount due to the IRS when I file?
Also, you wrote "To avoid the 6% penalty for 2024 you will have to withdraw the excess contribution (without earnings and losses) by December 31, 2024." If I withdraw $7000 from the Roth by the end of this year, as regular distribution...what about the earnings on that money while it was in the Roth? My spouse should never have opened the Roth; we can't just leave earnings in there to never be withdrawn, right?
