@ae7943 wrote:
PS: I will also be removing 2017 and 2018 excess contributions later in the year (and file corresponding 5329 forms for the 6% penalty), but as I understand it that should not have any bearing on amending my 2019 tax return.
Note, if you do not know:
The 6% penalty repeats each tax year that is it in the IRA.
For the 2017 excess there will be a 2017 and 2018 and 2019 6% penalty,
and for the 2018 excess, a 2018 and 2019 6% penalty.
You need to file a 5329 for each year.
There will be no 2020 penalty if both excess are removed before the end of 2020 as a "normal" distribution of the excess only, not the earnings, which can remain because the penalty is paid. There will be no tax on the distribution since it is your contributions - just the penalties.
**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.**
