Contributing to Roth IRA since 2013, last week I discovered I was not eligible to contribute in 2016 & 2018 due to MAGI limits. Pls. let me know if I am on the right path to remedying this. Remove $13k excess Roth contributions prior to 12/31/2019 and file these tax forms:
2016–Forms 5329/1040x & pay 6% tax $390 ($6500 excess)
2017–Forms 5329/1040x & pay 6% tax on 2016-17 $780 (no excess)
2018 -Forms 5329/1040x & pay 6% tax on 2016-17-18 $1170 ($6500 excess)
2019 - File Forms 5329/1040 & pay 6% tax on 2016-17-18-19 $1560 (no excess)
Total of 6% Excise Tax 2016-2019 = $3900, also in 2019 I will pay 10% early withdrawal penalty on 2016 ($1251) earnings (2018 was a loss -$86) using IRS formula below.
Net income=excess contribution x ACB-AOB
AOB
*Note: Took indirect 60-day rollover distribution from Traditional IRA in June 2019, deposited full amount back into account before 60 days. Would this impact withdrawing the excess Roth IRA contributions in 2019? Should I be handling any of the above any differently than outline above, any guidance appreciated.
