My TT H&B 2021 doesn't appear to be calculating correctly.
Timeline:
- 10/2021 contributed to Roth IRA
- Filed standard 2021 extension in 04/2022
- Discovered high MAGI issue and performed Removal of Excess prior to 2021 filing deadline in 10/2022
- Incurred some Loss of Principal of the contribution during the interim
IRS says 2021 filing is not correct.
In TT, the IRA Contribution worksheet line 25 states to "Enter any contribution included in Line 24 (i.e., initial contribution amount) withdrawn before the due date of the tax return. Due to the Loss of Principal the amount is less than the original contribution which TT then interprets as excess contribution remaining on Line 27.
How does one correctly account for the loss of principal?
