Tax Year 2021: Filing status: Married File Jointly, No Extension.
I have made few confusing steps/mistakes in excess contribution & withdrawal for 2021, and appreciate any help. Thank you.
My Roth 2021 Contribution: $7,015
Spouse IRA 2021 Contribution: $1,500, Roth 2021 Contribution: $4, 500. Total = $6,000
Due to too much earned income on 2021, we were not eligible for IRA contribution for 2021 (never happened before).
2021 Tax filed by April 2022, and with the assumptions that these amounts are going to be withdrawn, None of these amounts were specified in the 2021 tax forms. Thanks to the tax guy.
But in reality, these amounts were removed only around October, and this is where things started getting ugly. I did not file for 2021 amendment, and tax guy did not mention about it.
I removed $7,000 from my Roth IRA.
Plus I made a mistake of withdrew more ($5,000) in ROTH than contributed($4,500) and failed to remove Spouse's IRA ($1,500) due to first time withdrawal anxiety.
Got two 1099-R with year 2022 and trying to take care of those in this year
Mine: Line 1: for me 7752.09, Line 2: 752.09, Line 7: J, P
Spouse: Line 1: 5035.28, Line 2: 0, Line 7: J, P
Step 1: I have taken is filing for 2022 extension to take care of these issues.
Question 1: I did not file 2021 amendment. Based on forums discussions, I need to file for 2021 amendment, do I need full amendment, or simply 5329 enough?
Question 2: Is it possible to use "extra contribution" $1500 of 2021 for year 2022, how to do it? Do I have to work with my brokerage, plus how to report in the tax form?
Question 3: Is it possible to repay the extra amount withdrawn from Roth ($500), how to report?
I hope all these things can be done by Oct 15 due to extension and understand there is going to be penalty and I am fine with that.
BTW, I am fixing these in turbo tax this year.
Thanks again for your help!
