1: So I must now ammend my 2022 return and pay regular income tax on the excess contributions and earnings at the time of rollover/distribution? In this case would a 10% early withdrawl penalty still apply?
2:It's too late to remove the excess contributions/earnings to the ROTH IRA as this was tax year 2022 when it occured. Does paying income tax on the excess contributions and earnings not satisfy the excess at that time thus making the amount distributed to the ROTH IRA no longer "excess" or does it continue to be?
Unfortunately I already contributed the standard IRA limit in the tax year as well. Still being considered excess after paying income on it seems like double taxation which, as I understand from reading IRS website seems to only apply to standard 401k (possibly because a standard 401k is an income defferal as opposed to a non-deductible ROTH). I read in an example that the ROTH 401K is only taxed at the time of distribution but I suppose that if it's considered a distribution at the time of rollover that still applies?
Thanks for the insights you are probably more knowledgeable than a random CPA I would consult in my area.
