@todd68 wrote:
I am stuck in figuring out how I report that I removed the 2018 contribution to avoid a future 6% tax. Also, how do I correctly put in the money I put in the traditional IRA and then back into the Roth IRA?
You did not remove the 2018 contribution before April 15, 2019 so the 6% penalty cannot be avoided. It not reported on your 2018 tax return then you need to amend 2018 and add the Roth contribution and a 5329 form with the 6% penalty.
You also need to do the same for 2019 and pay another 2019 6% penalty because it was also not removed before December 31, 2019. Because the 6% penalty must be paid, there is not need to remove any earnings attributed to the excess.
If you had another 2019 Roth excess, how was it put into the Traditional IRA? Did you instruct the Roth IRA custodian to recharactorize it to a Traditional IRA?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
