Hi everyone,
I'm filing taxes for 2021 and having trouble with Roth IRA.
In 2021, I contributed $4,500 in Roth IRA with Fidelity. Then in August 2021, I accidentally deposited $6,000 in Roth IRA with Vanguard. (I was confused with a question when opening a Roth IRA account with Vanguard)
After the money was settled down in the account, I was frustrated and transferred all $6,000 to a Brokerage account in Vanguard. I did not use any recharacterization forms to remove the excess contribution.
I received a 1099 R form about the distribution of $6,000 from Vanguard. I filed that in my taxes, but what should I enter for the question: Your Excess Roth IRA Contributions for Prior Years.
Should I enter $0 or $4,500?
According to this information https://investor.vanguard.com/investor-resources-education/iras/excess-contribution, there are many ways to remove the excess but I did not use any appropriate form to remove $6,000. I just transferred that to a Brokerage account.
I contacted Vanguard but the answer was not helpful. They said I need to talk to my tax advisor about handling the excess contribution.
Please help me out. I file my own tax and don't have a tax advisor. I appreciate your help!
