If I contributed an excess of $3,500 to my Roth IRA in 2024, but did not realize until March 2026, how do I report this on my 2024 and 2025 taxes? I assume the first step would be to have my custodian remove the excess contribution and associated gains, but from there what would the proper course of action be? My understanding is it would be as follows:
1. Amend my 2024 tax return, by reporting the excess $3,500 in contributions, then the TurboTax software will likely have me fill out form 5329 in order to pay the 6% excise tax; I also believe I will need to input the info I would likely see on my 1099-R form in order to have my amended 2024 tax return reflect the earnings related to the excess contribution removal, though I will need to calculate this (specifically the NIA) myself as I don't think I will I will receive the 1099-R until later in 2026/2027, but the info should just be the earnings, total amount returned, and inputting codes P and J (I also believe that assuming I input the form 1099-R info correctly, I can disregard the form once I receive it given I have reflected it in my amended 2024 taxes)
2. Once I have successfully and correctly amended my 2024 tax return, and it has been processed/accepted by the IRS, I can then file my 2025 taxes, which should i) also include a form 5329 in order to pay the 6% excise tax as I didn't remove the excess until after 12/31/25 and ii) should reflect the info from the processed/accepted amended 2024 taxes
3. Once I have successfully amended my 2024 tax return and file my 2025 tax return, I should be all good and will no longer have to pay the 6% excise tax given at 12/31/26 there will no longer be an excess present nor will I have to make any other retroactive corrections, and I should be good for the 2026 tax year
Any advice/corrections/clarifications/answers to the above would be much appreciated, that way I can correctly go about doing all this in TurboTax and not have any more issues going forward. Thank you!
