Hello community!
First time inquirer here.
I am in the process of amending the 2023 tax year to correct (lower) the carryovers. This process is causing the income to be higher. Due to this, my wife and I now have excess contributions per form 5329 (line 24) and the penalty (line 25). In 2024 tax year (we have not filed), we cannot contribute to Roth. My question is:
1. I understand that it has passed the cut-off for tax year 2023, so we are responsible for the penalty. Does the 2023 1040-X amount owe already include the penalty?
2. If so, then we only need to withdraw the excess per the form 5329 line 24? No need to worry about the earnings?
I hope tax gurus can give us some enlightenment.
Thanks!
