Even though my 2023 excess contribution is $2,600 ($2.000 was contributing in 2023 and $600 was contributed in 2024). You believe that the $600 should not be reported in 2023 return? But that was part of my excess contribution for tax year 2023 though. If i don’t report the $600 in 2023, doesn’t this mean i did not remove all my excess contribution in 2023 and will be penalized the 6% for the balance of $600? I am confused.
Shouldn’t i report $2,700 ($2,600 excess removal plus $100 interest earned in 2023) in box 1 and $100 in box 2 for the 2023 return? Then report $20 interest in both box 1 and box 2 in the 2024 return? Please confirm. Thanks.
