Hi there,
I believe I have made a big mistake. I have been struggling to determine whether the Roth IRA conversion should be deducted from MAGI. Last week I finally asked my IRA provider Fidelity to remove the 'excess' contribution from 2021.
Here is the timeline:
2021 Tax - AGI 170,000. This AGI included the 50,000 Roth IRA conversion. I made a 5k Roth IRA contribution for 2021.
2024 March - Requested Fidelity to remove 5k as '2021 excess'. They have deposited the 5k to my brokerage account.
I tried to amend my 2021 return via Turbotax desktop version to report as 'excess'. However, it does not flag for any 'penalty'.
Questions:
1. What was my MAGI in 2021? Was I eligible to make 5k Roth contribution that year?
2. If I did not make an excess, I really don't want to withdraw it. Am I able to put it back now? The withdrawal made was last week.
3. What are my options to reduce the damage if I can't put it back to my IRAs? Can I ask Fidelity to send a new update to IRS to change from '2021 excess' to '2024 distribution'?
4. What are the tax years I need to file amend to IRS? FYI, I haven't filed my 2023 tax because of this...
TIA.
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