Thank you so much for your explanation. I just want to confirm if my action items are correct.
Amend 2024 Return:
- Need to pay 6% of the 2023 excess contribution $6500*6%= $390 (removed the excess yesterday)
- File 1040-X
- Your Roth Contribution: $7000
- Your Excess Roth IRA Contribution for prior years: $6500
- Q1: Contribution withdrawn before due date of your return: $6210 (I guess not $6210+$6500, because $6500 was not withdrawn before April 14, 2024?)
- Need to file a 1099-R (will receive the form in 2026) but can have a DIY form (Q2: Is there an option to not enter 1099-R when amending 2024 return but enter the 1099-R when filing 2025 taxes in 2026? Or it has to go with 2024 tax amendment?)
- Box1: Gross distribution: $5931.45 (2024 excess was $6210, but had a loss of $278.55) Q3: Is this correct?
- Box 2a: Taxable amount: 0 (because I had a loss) Q4: Is this correct?
- Box7: J and P
- Explain the return of contribution: Received a return of $6210 excess Roth IRA contribution with a loss of $278.55.
Amend 2023 Return:
- Need to pay 6% of the 2023 excess contribution $6500*6%= $390 (removed the access yesterday)
- File 1040-X and Form 5329
- Need to file a 1099-R (will receive the form in 2026) but can have a DIY form
- Box1: Gross distribution: $6500
- Box 2a: Taxable amount: 0
- Box7: J
- It did not ask for the year of the 1099-R. Q5 Is that okay?
I will receive 2025 1099-R forms in 2026. Just ignore those forms when I file my 2025 tax. Q6: Is that correct?
Total Penalty: $390*2=$780 + possible interests (not sure how the interests are calculated?)
Q7 Any mistakes of my action items?
Thank you so much for your help!
