@DanaB27 I am cashing out of my roth IRA for both 2021 and 2022 contributions. I walked thru the TT form and it ended up creating a form 5329 Additional Taxes on Qualified Plans that calculates the penalty. As part of that form it asks for the VALUE of my roth IRA as of December 31, 2022 which includes both my 2021 and 2022 contributions correct? Apparently it looks like I will only be paying a penalty for one year since I will be cashing in before the 2022 tax year deadline. Does that sound correct to you? Will I be paying a 2022 6% penalty for my 2021 excess contribution when I file for my 2023 taxes?
Also, since I am including my 2021 contribution as part of my Form 5329, why will I need to do a 2021 amended return? TT software did not address that as far as I know. I would think the software would tell me to also file an amended 2021 return as well as submiting a Form 5329...bad assumption?
