BillM223
Expert Alumni

Retirement tax questions

I would not worry about trying to "fix" the problem - as you note, it's not a lot of money, and will be more hassle than it is worth. Besides, it's not like you owe the IRS money; instead, they owe you. Furthermore, it is too late to fix the 2021 return, which needed to be done by the due date (as extended) of the 2021 return.

 

I would keep all your documentation in your tax file in case anyone ever asks. Just do what you had planned: report the two 1099-SAs (both the code '1' and '2') on your 2022 return and keep your 2022 contributions under the 2022 limit minus the "excess" contribution carryover from 2021. In this way, your return will e-file nicely, and it will appear that you have handled the excess contribution that you didn't have anyway.

 

There is a huge amount of paperwork that doesn't match, most of which does not trigger an audit anyway (although some audits are truly random), and the IRS does not get upset if they audit you and discover that they owe you money - but they will pay it to you...with interest...

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