rjs
Level 15
Level 15

Retirement tax questions

Since the $20,000 was put in more than 60 days after the distribution, none of it is a rollover of the distribution. The entire $20,000 is a new contribution. Obviously that is an excess contribution, so you must remove the excess, plus earnings, before the due date of the 2022 tax return. If you do not remove it you will be penalized not only for 2022, but every year that the excess remains in the IRA.


We can't tell how much the excess contribution is, because you have not said how much compensation you have. (Compensation for calculating the maximum IRA contribution is basically income from working.) Depending on your compensation, the excess contribution is at least $13,000 and could be as much as the entire $20,000.