Thank you @DanaB27 !
I used your information from an answer you posted a few years ago in order compile my steps, super helpful!
If I opt to wait until next year to amend the 2024 return using the actual 2025 1099-R (for the 2024 excess contribution and earnings) from the financial institution, I assume IRS late payment interest charges will continue to accrue? If that's the case, then I defintely want to manually input the 1099-R now and report it on our 2024 return to avoid those charges.
On that topic, I am fully expecting the IRS to bill for accrued interest from 2021-2024 on the late payment of the 6% penalty. Is that reasonable to assume?
I just hope the financial institution will provide me with all the details I need to manually create the 1099 in TurboTax, like their mailing address, phone number and TIN. The TIN is the most critical, correct?
Lastly, regarding #8, it sounds like if we leave any remaining balance in the account after all the distirbutions are made (all excess contributions and earnings through tax year 2024) there won't be any tax issue. I assume that when the amounts are withdrawn at some point in the future it would show up on a 1099-R and be considered taxable earnings but no penalties or late payment interests would apply?
