My husband contributed too much to his Roth IRA via mega back door conversion with after tax money. Part of the excess contribution happened in 2022 but he didn't realize it until 2023. He removed all of his excess contribution in 2023 in a way that he moved investments (stocks) into his regular brokerage account without selling them.
He got 3 different 1099-R 2023 forms for 3 different removals, the distribution codes are 8J, J and PJ. Are these correct?
The question is , does he have to pay 6% penalty because of this?
If not, can you walk me through the steps to fill out the form so Turbotax calculates it correctly?
Does he have to pay taxes on the removal of access contribution even though the stocks were not sold, so technically the gains were not realized?
