@Opus 17
Thank you so much for your detailed reply and step-by-step instructions. I truly appreciate it.
I have two follow-up questions:
Q1: On Form 5329, I understand that I need to report the carryover excess from 2021 in Part IV: Additional Tax on Excess Contributions to Roth IRAs. However, I’m wondering if I also need to report the earnings from my 2024 excess contribution in Part I: Additional Tax on Early Distributions. My understanding is that since the excess contribution was timely removed before October 15, 2025, it would not count as an “early distribution,” so I would not need to complete Part I of Form 5329. Could you please confirm?
Q2: On Form 1040-X, as you mentioned, lines 1, 5, and 6 have changed based on the differences between the original and amended 1040. For line 10, Other Taxes, my understanding is that this will only include the 6% penalty from the carryover excess contributions from 2021, but not the 10% penalty for 2024 early distributions (again, since it was timely removed, I assume it would not be considered an early distribution). Could you clarify if I'm understanding this correctly?
Thank you again for your guidance!
