Hello - I've been doing quite a bit of reading online to figure out my situation, hoping I could get some clarity as well.
Early 2021, I contributed $6000 to Roth IRA for 2021, then in March 2022, I contributed $3000 to Roth IRA for 2022. I realized that I'd be submitting 2021 taxes as married filing jointly for the first time in April 2022. With the combined income, it set us over the limit. I panicked and distributed $6000, $566 and $2977 (total of $9544) on April 22, 2022.
Now I'm realizing I'd need to correct the error and pay the 6% penalty, but having trouble calculating 'excess' Would that be $9000 - our MAGI? And 'earnings' would be unrealized gains from Vanguard in 2021?
Can I account for the penalty when I file for 2022, or should I file a 1040x and 5329 before completing this year's taxes? Thank you very much @dmertz
