My MAGI is above the limit for 2022, but I contributed $6000 to my roth IRA in 2022. The fair market value of my roth IRA as of Dec 31, 2022 was $5,894.34. In 2023, I contributed $500 cash (no investment) more and realized my MAGI is above the limit. So, I withdrew my $500 + $1(interest) in a few months. Currently my roth IRA market value is $6696 as of writing this and haven't filed my 2022 taxes. So, my 2022 investments appreciated, and I have some earnings on my investments, roughly $696).
I won't receive my 1099-R until 2024 but I don't want to amend my 2022 tax return in 2024. How can I empty my roth IRA to avoid the 6% excise tax now before the 04/18 due date and report my distributions?
TurboTax is asking me my total contributions and my withdrawals till april 18th, 2023 which is confusing since the $500 I contributed was in 2023 but I guess is considered as part of 2022? If I say I withdrew $6696 (2022 contributions + earnings) + $500 (2023 cash contribution) + $1 (2023 interest from cash) from Jan 1, 2022 to April 18th, 2023, TurboTax asks me to review the number and tells me that the withdrawals cannot exceed $6000. What is recommended here? I would appreciate any insights.
