dmertz
Level 15

Retirement tax questions

You've encountered the complication that occurs when you are in the Roth IRA contribution phase-out range and you do a return of contribution that must be accompanied by attributable earnings.

 

At this point all you can do is file the amended 2022 tax return and resign yourself to the fact that you have still made a small excess contribution for 2022.  Unless you are able to apply that excess as part of a 2023 Roth IRA contribution, you'll have that small excess subject to penalty again for 2023 and you'll need to resolve the excess in 2024.  Resolving the excess in 2024 means either being able to apply it as part of your 2024 Roth IRA contribution or before the end of 2024 obtaining a regular distribution equal to the amount of the excess.  (It's too late to do a return of a 2022 contribution before the due date of your 2022 tax return, including extensions.)

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