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Retirement tax questions
There are two ways of doing this.
1. If you enter the $6500 and the program tells you that you have an excess of $6500, it should ask you, will you remove the excess before the deadline? Say yes, that should remove the penalty.
2. Or, simply don't enter any Roth IRA contribution at all. If you remove it before the deadline, it will be as if you never made it in the first place.
Separately of course, you should enter a 2023 substitute 1099-R showing a total distribution of $7200, taxable amount of $500, and box 7 codes J and P. That should only tax you on the $700 earnings.
March 18, 2024
8:46 PM