I called the custodian and they say these are technically excess contributions although there was no excess contributions, because she is older than 65 and contributed while enrolled in medicare. They said they will not issue any corrected forms for 2023 because it's already after the deadline to file returns. They said they'll issue a1099 form for 2024 next year and would include both year excess contributions (2023-2024). They recommended calling the IRS how to approach this, also they said it's possible to reverse this return of the 2023 contribution, we'd have to refile excess contribution form and send them a check for the amount they just issued. The question is, what's the easiest way to correct this? I would like to return those 2023 contributions and not to file an amended return. I know because of this mess e-filing would be a problem.
Should we just return those 2023 excess contributions and wait what happens in 2025 or file an amended return and report this simply as other income, but some amounts on 2023 W2s and 1099sa will be still wrong. Any idea how to fix this mess????
