DanaB27
Expert Alumni

Retirement tax questions

1. Yes, you will say no to the Roth IRA contribution for 2022 because you removed it.

2. No, you don't enter anything for the traditional IRA unless you made a direct traditional IRA contribution for 2022.

3. Yes, you should check your records for your last filed Form 8606 if you made nondeductible contributions in the past but you don't need to enter that in the 2022 tax return unless you make a nondeductible traditional IRA contribution for 2022, take a distribution from the traditional IRA, or make a conversion.

 

No, on your 2022 tax return, you will have to pay the 6% penalty for the 2021 excess contribution because you missed the deadline to avoid the 6% penalty (the extended due date of the 2021 tax return). You will have to pay the 6% penalty on your 2021 and 2022 tax returns because the excess remained in the account and wasn't removed until 2023.

 

@gjgogol 

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