On April 15, 2025 I contributed twice the allowed amount ($8000 x 2) to my Non Deductible IRA for tax year 2024. On Dec 4, 2025 I received notice of the double contribution from my custodian. When I filed my 2024 taxes, I didn't include the double contribution, only the $8000 that I'm allowed on form 8606 for Non Deductible IRAs.
I know I need to correct the situation, but I'm unclear on my options. I read that I must remove the excess contribution, and pay a 6% penalty on the over contribution and a 10% penalty on the earnings. I'm not sure if it makes a difference that I made the excess 2024 contribution in 2025, and I didn't include it in my tax filing, and I plan to correct it before year end 2025. Can I avoid the 6% penalty? How would I handle the paperwork? Must I file an amended 2024 return even though I didn't include the excess contribution in my tax filing? Thanks!
