dmertz
Level 15
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Retirement tax questions

If it was $10 or less it would probably be considered to be a de minimis error.  $202.33 is substantially more than that.

 

Since you corrected the excess timely, you are not subject to the $300 excess contribution penalty.  Your amendment needs to include a corrected Form 5329 Part IV showing zeros where there were previously nonzero amounts.  That combined with the reporting of the $202.33 of income will result in a refund of the difference between $300 and the additional income tax.  Your amendment needs to include "Filed pursuant to section 301.9100-2" as part of your explanation.

 

You'll also likely need to amend your state tax return for 2023 to add the $202.33.

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