dmertz
Level 15

Retirement tax questions

As long as there was sufficient supporting compensation, it sounds like the $1,500 contribution was a permissible nondeductible traditional IRA contribution that was required to be reported on your spouse's 2021 Form 8606.  If so, there is nothing to correct with respect to the $1,500 contribution except for filing your spouse's 2021 Form 8606 if that was not already done.  This basis carries forward to be applied proportionately to any of your spouse's traditional IRA distributions.

 

The $5,035.28 code JP 2022 Form 1099-R doesn't make sense.  If this was a return of your spouse's $4,500 Roth IRA contribution, the amount in be 2a should be $535.28, not $0.

 

The taxable amount of each of the code-JP Forms 1099-R is taxable on your amended 2021 tax return.  The amendment needs to be marked as being "Filed pursuant to section 301.9100-2."  The amendment would also need to include corrected Forms 5329 to show that amount of excess contributions was $0 rather than $7,000 and $4,500.