- "Service providers will typically determine the excess earnings and you will report it then."
So, earning/interest earned on Roth IRA will have to be reported as taxable income on 2023 returns, right? It was my understanding that you must report the earnings in the year the contribution was made?
"The withdrawal of contributions is tax free, but you must include the earnings on the contributions in income for the year in which you made the contributions."
https://www.irs.gov/publications/p590b#en_US_2021_publink100091157
- "You may be able to eliminate the 6% penalty for 2022 if you withdraw the excess by the due date of your return, which is why I recommend you contact them ASAP."
Is it if we withdraw the excess ( 2021 contribution and earnings) by the due date of 2022 returns or by the 2022 year end aka December 31, 2022 to avoid penalties? I thought it was by the year end.
The service provider is not helpful sinc they claim those are tax questions. And no leaving the excess and applying to another year is not an option since we would not be eligible due to income limitation.
