Hey got a follow-up question to this.
My situation is my wife and I got married in 2020 and at the end of the year, I realized our new combined income was just a few thousand over the limit to contribute to a Roth IRA. For our 2020 taxes, I paid the 6% penalty on the $3,000 in ineligible contributions I had made before we got married.
By the end of 2021, our income will be less since I was unemployed for a few months, making me eligible to contribute the full $6,000 again to my Roth IRA. Are you saying I can apply the $3,000 excess from 2020 to 2021 and be free of having ineligible money in my Roth? Thus I could invest only $3,000 for this year since I would be using $3,000 from 2020.
That is how I'm reading IRS Form 5329 Part IV.
