Do I need to tell my Roth IRA custodian about the Carryover or they don't need to know? It is between me and IRS.
I guess carryover does not generate any distribution or removal of gain from contribution so basically no change to my Roth IRA account. I will not get any 1099-R or any Form ( Is there one for Carryover) from the Roth IRA Custodian.
In 2022, what I need to do is to fill the Form 5329 by myself to report the $7K excess contribution in 2020 and pay my $420 excise tax. I do want to keep the money in Roth .
Thank for clarify this.
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Just wonder. Alternatively , after the time allowed for Eliminating excess contribution, I can fix it by making Ordinary Distribution of $7K (or it needs to include the gain) with no tax consequence (on earned interest). As I just turn 60 year old, I don't pay early withdrawal penalty or income tax on distribution. Since I rather leave more in the Roth IRA for growth, it would be better to pay the $420 excise tax once in order to keep the $7 contribution and its large gain of interest untouched din the Roth account.
