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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 I have not yet submitted those taxes so I know I can (and have) withdrawn the excess and calculated the NIA and paid tax on those earnings.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