@dmertz wrote:
You can amend 2017 after filing 2018, but you need to make sure that your 2018 Form 5329 shows on line 9 the $6,500 of excess contribution carried in from line 16 of the amended 2017 Form 5329 you will be filing. Don't wait too long to file your 2017 amendment.
@dmertz I am assuming that by filing the 2018 1099-R with box 2a a zero that the poster is conceding that the entire $6,500 2017 contribution was not timely removed and therefore owes a 6% penalty (excise tax) of $390 for 2017. Am I correct that in that case the earnings can stay in the IRA and do not need to be removed since the penalty has been paid on the entire amount?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
