I over contributed 11,995 to my IRA for 2019 and 2020 in July of 2020 after having contributed to the ROTH limit -- I didn't know the 7000 dollar limit was across both the Standard IRA and the Roth .
To make things more interesting, I did a Roth Conversion for 16,131 which was basically the 11955 excess contribution with 4176 in additional growth. IRA 1099-R shows Gross distribution of 16,131 and taxable amount of 16,131
Questions Below:
1. Do I pay taxes on the full 16,131 if I take the excess 11955 out?
2. Should I wait till after October to take excess out because of the growth? (since the growth was dramatic)
3. If I wait till after October, will the gains be taxable in the future?
4. If I wait till after October, I'll have to pay 6% excise tax on the 11955 correct?
5. Are there any other taxes that I'd need to pay other than the excise tax?
6. If I take the excess prior to April 15th, I'd pay taxes on the 4176 at my standard rate correct?
7. Would I need to include the total gains in the ROTH in the net income attributable calculation or is that done in the IRA side prior to the conversion?
8. What forms are involved?
