HI Dana- Thanks very much for this response but appears perhapsI was unclear.
The excess contributions were NOT to Roth IRA but to Trad IRA. The mistake was my custodian.
In Feb of 2024, they put in those IRA contributions at my request: 7500 for 2023 and 8000 for 2024. I asked them to remove 3 wks later as I realized I hadn't/ wasn't going to be earning. They took out both as excess contributions. BUT they neglected to remove the earnings (NIA) ! I didnt realize this till I got the 2 1099s both end of March. Each had amount of distribution with taxable part as zero. I had switched custodians- we called and they apologized but nothing they could do.
The earnings were about 79 on 2023 and 40 in 2024. We just put those back in Trad IRA. I need to finish my 2024 return tomorrow and need to know what to do. I know I need that Form- do I list the original and the earnings as the separate excess contributions they were? Then what? They gave me options for the excess 40 and want to now apply that to 2024 which I can do as I have nothing contributed. ( Easier for me than having another excess contribution to deal with next yr). will the software allow me to pay the tax on that? and is there a 6%penalty given I put everything back? I'm confused in that though it;s 2025 now it's still within the time available to contribute money to a 2024 IRA. yet it asks what yr you put it in ( 2024) and what year you took it out (2025). So it's not clear about penalty .
It's so helpful when you list exactly what to do as a recipe. I didnt expect to be right at deadline. Very stressful
As for 2023, I know I need to amend that return. Same form? Besides tax I know there will be penalty . now that earnings are returned do I pay penalty twice since it's now 2025?
It would be helpful too if you delineate the difference between the cases above w Roth IRA and this case, other than that they dont have to pay any tax and I do.
Thank you so,so very much and hope I hear today as I wont have time to do return next week.
