Re form 8606, I think I do not need the form, per the bottom of page 5 in the 8606 instructions. Since the distribution is
a) after the due date of my 2012 return (the year of the excess contribution)
b) did not involve a deduction (it was a roth contribution so there was no tax deduction to take)
c) the total for the year was under 2012's $5k overall maximum contribution
So for 2017 taxes I will file:
- 5329 showing 0 excess contributions remaining
- 1040 will have line 15a=333 and line 15b=0 since none of the distribution is taxable based on 8606 instructions (and also no need to file the 8606)
- an explanation of all the above 🙂
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"The amazing thing is you could make a $3k profit..."
Not really...you pay a 6% penalty on the excess every year. That should pretty much wipe out most gains you'd make, if not more.
