I'll try to keep it short.
- Put too much in Roth IRA 2020, took it out Feb 2021. Filed my taxes.
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- There is $150 in earnings that will need to amended in my 2020 when I get the 1099-R spring 22'.
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- Therefore the $150 will increase my MAGI making my initial withdrawal not enough to cover this hole.
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- Basically I'd have to pay a 6% penalty on maybe like $20, etc.
Because this is a just opened Roth IRA with only a few thousand in. Doesn't it make more sense to just close out the entire account before April 15 and just pay the penalty on the earned income just one time on the amended return and not have to deal with the 6% penalty on the overage cause by the increase of MAGI by $150.
