@fanfare wrote:
Since Republicans intend to claw back the $80 billion IRS funding,
audit risk is falling again.
That's a rather short-sighted argument. If the Roth IRA is not corrected, it presents an ongoing audit risk for the rest of the taxpayer's life, plus the lives of their heirs, if the Roth IRA is inherited. Who's to say what audit risks will be in the future. Maybe the IRS will actually develop a working computer system that doesn't run on 1960s code that can identify this situation automatically.
I don't know that I would perform the special "removal of excess contributions" procedure for 2024, if there are 2024 contributions, simply because that would mean filing a form 5329 that you know is incorrect. Since the deadline to remove excess contributions is April 15 next year, I suppose the best thing to do in the short term is to make a regular withdrawal of all contributions up to 2023 (before December 31, 2024), then contact a pro. The pro can get an extension of the 2024 deadline, and can decide whether or not to use the special procedure on the 2024 contributions before April 15, 2025.
