@DanaB27 To answer your question:
"To confirm, you didn't enter the Roth IRA contributions for 2021 on your 2021 tax return? You have to enter the Roth IRA contribution for 2021 on your 2021 tax return and then TurboTax will automatically calculate the 6% penalty on your 2021 Form 5329 part IV. Therefore, you will need to amend your 2021 tax return to pay the 6% penalty on your 2021 tax return for the 2021 excess."...I did not enter the Roth IRA for 2021 on my 2021 tx return. I read that I did not need to report Roth contributions because the IRA contributions will be reported on Form 5498 by the custodian for information purposes. As I was completing my 2022 TT return, it asked me about prior excess contributions and I inserted $7K for me and $7K for my wife. It appeared that TT automatically created Form 5329 showing a 6% penalty of $420 ($7K x 6%). If TT is already showing a penalty/tax for my 2021 excess contribution, do I still need to amend 2021 return?
"If you decide to withdraw the excess contribution for 2022 plus earnings then please be aware the earnings will be taxable on your 2022 tax return."...how will I show what my earnings are on excess 2022 contribution? Will TT calculate the earnings to be taxed based on the value I input? Or will the custodian need to provide a revised 1099 to me?
One more question, My wife and I have a couple of small IRA accounts (both traditional and roth) in addition to the roth IRAs identified above, BUT with a different custodian. They were created 20 years ago with no activity other than earning some interest over the years. Should the values of those IRAs be included when TT asks for the value of my Roth IRAs?
