Hi @DanaB27
Thanks for all your advice. I have the following questions.
I can see based on your comments in my post and other posts that a 6% penalty is due for 2023 even though the contribution was made in 2024 for 2023, this is because I had until October of 2024 to fix. OK
As she was eligible to contribute in 2025 for the 2024 tax year, can't she avoid the 6% penalty for 2024?
We made the max contribution of $3657.30 on Jan 28 2025 for tax year 2024. Fidelity removed the excess (unfortunately plus earnings) of $1607.19 on Jan 30 2025. i.e. the 2023 6% penalty would still be paid, but the 2024 excess was fixed within 2 days and by the filing deadline of April 2025...
Assuming she has to pay the 6% penalty for 2023 and 2024. As Fidelity also refunded the earnings of $276.30 and if they refuse to fix, how would that be handled?
I know we paid the penalty and fidelity should not have removed that amount. However if they refuse to fix, would that be entered on the 2025 return that I fill out in 2026? Would it count as an early withdrawal subject to income tax and a 10% Penalty?
Thanks for your help
