Yes, since the 2021 excess contribution wasn’t removed until March 2023 you will have to pay the 6% penalty on your 2022 tax return. Excess contributions are taxed at 6% per year for each year the excess amounts remain in the IRA.
- No, if they didn’t change then you don’t have to include them when you mail the amended return.
- Some users have had issues e-filing prior year amended returns and had to mail it.
- No, if your state return didn’t change then you do not need to file an amended state return.
You can use the 2022 tax return that you started you only need to enter the 2021 excess contribution on your 2022 tax return:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- On the "Do you have any Excess Roth Contributions" answer "Yes"
- On the "Enter Excess Contributions" screen enter the total excess contribution from 2021.
@gjgogol
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