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Retirement tax questions
To clarify, does your 2022 return include Form 5329 and calculated a penalty in part III? You wouldn't include a 401k contribution in the IRA contribution section.
Note, if you get the warning that you cannot deduct a traditional IRA contribution then this isn't an excess contribution it just means your contribution is nondeductible and TurboTax will create Form 8606 to report the basis. If you have an excess IRA contribution you will get a warning about the 6% penalty and TurboTax will fill out Form 5329 to calculate the 6% penalty if you do not withdraw the excess plus earnings by the due date. Therefore, if entered the IRA contribution but you did not get the penalty screen and have no 2022 Form 5329 then you do not have an excess contribution for 2022.
If you indeed have an excess contribution then you will have to pay the 6% penalty for 2022, 2023, and 2024 (assuming you cannot apply the excess to 2023 or 2024). If you cannot apply the excess to a following year then you will have to remove the excess with a regular distribution without earnings since it is after the due date. Please see Return of Excess Traditional IRA Contributions for details. But it seems your 2023 return doesn't show an excess contribution since the IRA Worksheet Line 15 "Excess traditional IRA contributions to Form 5329, line 15" shows "0".
No, you do not fill out Form 8606 every year. Please see Who Must File Form 8606 for details.
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