Dana,
I"f you choose not to ignore it you would have to file an 2023 amended return return to pay the 6% penalty. If you are able to earn enough in 2025 you could apply all of the excess as a 2025 contribution."-you said.
I didnt realize I could also apply the 2023 excess to 2025. Yes I could earn that.?
But I would have to file an amendment of 2023 correct - to pay the penalty - correct?
"
Since they didn't take the earnings out the Form 1099-Rs show are regular distribution and should have code J (if you are under 59 1/2), T or Q. Entering a 2024 Form 1099-R with code J, T, or Q would resolve the 2023 excess. Is the custodian willing to change the code from P to J?"
None of the 3 codes to me. I am 68 yrs old. And both codes T and Q apply to Roth IRAs. Recall this is a Trad IRA. They will not amend these 1099s at all- they are done. The only codes are X on one and P on the other, and it seems that those are the only ones that apply . Correct?
Can you outline clearly what I do on the return to deal with this situation? Under where it says Trad IRA? There is none anymore only the earnings. Where do I indicate. earnings for which there is no 1099R ( and the 0 contradicts that. ) And exactly how do I apply the 2024 earnings to a 2025 IRA. just open one? I really need super concrete instructions, I prob will get an extension but I;d still like get this done asap as it's extremely stressful. also for 2023 when I amend how do I indicate these earnings ( for which I also won't have a 1099 until next yr) are applied to 2025 IRA?
Thanks again for your help and being specific and accurate.
