I am not allowed to make any direct roth IRA contributions. But by mistake I had contributed for 2016 and 2017. And when I look back at my tax returns, I never mentioned these contributions.
Last month I withdrew both my 2016 and 2017 Roth IRA contributions (along with associated gains). This means I'll be getting my1099-R next year. My question is... what is the next step?
Do I need to amend my 2016 and 2017 returns? Or can I just pay the penalty along with my 2019 return? If I have to amend, do I amend now or after I receive my 1099-R next year? Will it change my penalty if I do it this year vs next year? I was told that if I remove my excess contributions by the 2018 tax deadline, I don't have to pay penalty for the 2018 tax year.
What part of the 2016/2017 mess do I mention in my 2018 return? Do I just not mention anything and wait till next year to deal with it? Do I pay the penalty now or do I I wait till next year to pay the penalty? (6% per year that the excess is not withdrawn, plus 10% on earnings)
Please advise.
