Hi dmertz, I filed a 1040 with form 5329 showing I had made the excess to daughters IRA for tax year 2020 and that the excess was not removed by tax filing time for tax year 2020. A 60 dollar fine was assessed and paid. As I mentioned in original question, the excess of $1000 for 2020 (and the 10 excess for tax year 2021) were both removed in March of 2022 before the filing deadline for tax year 2021.
You mentioned in reply......The excess $1,000 contribution for 2020 carries forward to 2021 where it is again subject to a 10%, $60 penalty on a 2021 Form 5329. If I removed the $1000 2020 excess contribution that carried over into 2021 before April 18 2022 (tax filing deadline) would I be subject to the $60 penalty? Thanks for the clarification.
