rbtaxq
Returning Member

Overcontribution to ROTH IRA 2 years ago

Hi,

I realized in February 2025 that I overcontributed to my ROTH IRA and my husband's ROTH IRA in 2023.  I have already filed my 2023 tax returns.   I will be withdrawing the full overcontribution amount ($6500 from my Roth and $6500 from my husband's ROTH).    I know there is a 6% penalty and I need to file a 5329.  My question is do I also file an amended 2023 tax return to pay tax on the earned  income for the excess contribution?  We also overcontributed in 2024. I have not yet submitted those taxes so I know I can (and have) withdrawn the excess and calculated the NIA and paid tax on those earnings.  But it is unclear to me if I do the same for 2023.  The 6% penalty seems very low so imagine that I need to pay some kind of interest or tax on the earnings accumulated?  Should I file an amended 2023 tax return and report those earnings on the 1099-R just like I am doing for 2024? Or how else do I report them?

Also - on my 2024 tax return, once I have fixed 2023 can I then say that I did NOT overcontribute in any prior years?

 

Thanks