Hi there, I would greatly appreciate your advice for a follow-up question from my earlier post.
Context: I had made $7000 Roth IRA contributions for 2024 and 2025 without realizing that there is a income limit of $150,000. (for single). I submitted the form to Fidelity to return my $7000 contribution made to Roth IRA in Jan 2024 + $801.85 earnings = $7801.85 . (I will do the same after it gets processed to submit request for return of my contributions of $7000 made in Jan 2025 for my 2025 Roth IRA with loss of $86.).
1) Do I have to pay any penalties other than tax on the $801.85 earnings?
2) I entered 1099-R myself as in screen shot below, please confirm if the entries look right.
3) Please help me understand if MinhT meant that I would need to amend my 2023 tax return by his comment :"6. On your 2023 tax return, answer that the 1099-R with code PJ is for 2024." (My income was < $150k in 2023 and I had contributed $6500, so I thought that was ok for 2023 and I just need to fix 2024. ).
