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Retirement tax questions
Yes, you can use the excess $3000 in 2021 (called an absorption), which makes your 2021 excess contribution $6,000. Now you can make the corrective distribution before the dues date of the 2021 tax return and not incur additional penalty.
In TurboTax, you will enter in the Deductions and Credits section. If you used TurboTax last year, it should have the information and ask you about the excess, if not it will ask you if you had an excess contribution- just indicate No and continue. After you enter the 2021 contribution, you should see the same screen that warns you of the excess.
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March 11, 2022
12:39 PM