cjsmich
New Member

Retirement tax questions

Thanks for the quick response and help! Just a couple follow-up questions:

(1) where is the 10% coming from? It was my understanding that the excess contribution penalty is 6% per year that the excess remains in the account.

(2) I was also ineligible in 2017 to make a Roth IRA contribution, though I already contributed $5,500. I haven't filed my taxes for 2017 yet, so it's my understanding that I can re-characterize the Roth IRA as a Traditional IRA instead before the tax deadline. At this point, I would avoid the 6% penalty, but would need to pay the 10% early withdrawal penalty + taxes on earnings. Is that correct?

(3) Aside from the 5329 + 1040x for my amended 2016 return, which other tax forms will I need to fill out as a result of these two issues?