Retirement tax questions

As fanfare mentioned you can request the return of the excess contribution plus earnings (by the due date) to avoid the 6% penalty for the 2022 excess contribution. Other options are listed here: What happens if I made an excess Roth IRA contribution.

For the 2021 excess contribution, you will request a regular distribution (without earnings) since the extended due date of the 2021 return has passed.  You will get a 2023 Form 1099-R with code J and this belongs on the 2023 tax return. Make sure you include the 2021 excess in the net contribution amount prior to 2023 when TurboTax asks in the follow-up questions.

You will need to amend your 2021 tax return to add the 6% penalty. Please enter the Roth IRA contribution and TurboTax will automatically calculate the penalty on Form 5329.

You also will have to pay the 6% penalty on your 2022 return:

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. Continue and answer "Yes" on the "Do you have any Excess Roth Contributions" 
5. On the "Enter Excess Contributions" screen enter the total excess contribution from 2021.

On the 2023 tax return, the excess will be resolved when entering the 2023 Form 1099-R with code J (regular distribution of the 2021 excess).

@gjgogol