Hi again,
I have to say, I really appreciate you guys for taking the time to help me out with this mess. I've consulted with a local tax professional and was told that in addition to filling a form 5329 for each year that I made excess contributions I should also be completing a form 8606, though I'm still in talks, and unsure why this form is relevant for my situation.
For 2023: Excess Contributions
- Son:
- Withdraw all excess contributions before December 31, 2023 to avoid additional penalties.
- Complete an IRA Return of Excess Contribution Form with Broker B.
- Complete form 8606 for the year he does the withdrawal.
For 2022: Excess Contributions & Indirect Rollovers
- Me: Corrected Form 5498 form Broker B to indicate an indirect rollover instead of a new contribution.
- Son: If withdrawing excess contributions for 2022, does he still need to follow the same procedure as me?
For 2019-2021: Excess Contributions
- Son: Withdraw the excess contributions and complete Form 5329 with Broker A (Fidelity).
I had a call with a representative from Broker A (Fidelity), he mentioned that Forms 5329 should be completed in-house with the brokerage.
Are there any additional steps or considerations I might have missed?
Thanks again for everything, wishing you guys and your families a Merry Christmas.
