Hello-I would really appreciate some clarification on how to handle my situation.
I made an excess contribution of $960 to a Roth IRA in 2017 and didn't catch it.
The excess contribution sat in that account for 2018 and 2019. Didn't realize the excess contribution until June 2020 and now I realize I have to pay penalties for the excess contribution.
So far I have completed a new 1040X for 2017 and a 5329 (with payment of $58 for the 6% penalty)
Completed a 1040X for 2018 and a 5329(with payment of $58 for the 6% penalty)
My next question is: I already filed my 2019 taxes. Do I need to send in a 5329 (with check) to address the fact that I did not remove the excess contribution during the calendar year of 2019? I will remove the excess amount before the end of 2020.
Also, I have read conflicting information regarding the amount of funds to remove: I read that you need to remove the excess contribution in addition to any gains/losses that contribution has made in the account. But, I have also read that if an excess contribution has been sitting in a Roth IRA and was not corrected in a "timely manner"(in my case not withdrawn by April 15th 2018 or by the extended October 15, 2018 deadline) then I only need to remove the excess contribution and any gains can remain in the Roth IRA.
Thank you for reading this really long post & I appreciate your help!
