Thank you. It is all clear. For those reading this thread the 1st time, the advises were all clear and correct .
Let's clarify it more:
The discussion was originally focus on people wants to correct their excess contribution in the year and/or to avoid paying the excise tax. It also addressed people that do not aware of the "excess contribution" and retro reporting/fixing the issue with IRS. File and pay the excise tax ASAP is sort of at the bottom of consideration.
My case turns be to be extreme opposite. I know about the excess contribution (honor mistake) and decide paying the excise tax is the best financial option for me AND is able to use absorption /carry-over to eliminate the all excess contribution the following year. As a result, the correct tax filing process for me is do report the excess contribution and pay the excise tax on my tax return now (with 5329) and the following year tax return will pick up the rest with another 5329. So it is straight forward, simple, easy and not to worry about any Net income & tax consequence,...etc.
Without tax professional to review my case in details, the most work for me is to study the various correction options & schedule, tax filing options and to determine what is best financial case and tax reporting for my case.
Thank you for all advises and DMERTZ. The thread is now close ( for me).
