Is an amended 2014 return required for excess Roth contributions distributed to a traditional IRA in 2016?

[nwhysee]

I made $5500 contributions to a Roth IRA in both 2014 and 2015, neither of which I was eligible to do (I'd intended to put them into a non-deductible traditional IRA).  I discovered my error doing my 2015 taxes and re-characterized the 2015 contribution to a non-deductible IRA for TY2015 before the deadline.  I also distributed the 2014 contribution amount (without earnings, which is how Vanguard does it) to my traditional IRA for the 2016 tax year.  On my 2015 taxes I reported and paid the 6% tax on the excess contributions (e.g., $330).  

Question 1:  Do I need to file an amended 2014 return to report the excess contribution to the Roth (now removed)?

Question 2:  Do I need to somehow calculate the earnings from the 2014 return that remain in the Roth and distribute them to a traditional IRA in 2017 to avoid futures isses?

[nwhysee]

Apologies--I should have added that my 2014 Form 8606 shows the $5,500 contribution as being made to the traditional IRA even though it was actually made to the Roth IRA, therefore my traditional IRA basis is overstated on my 2014 Form 8606 and my 2015 Form 8606 by that $5,500.

[dmertz · Accepted solution]

1.  Yes, you must amend your 2014 tax return to remove the $5,500 traditional IRA contribution and to add the $5,500 Roth IRA contribution so as to generate From 5329 reporting the excess Roth IRA contribution that is subject to penalty for 2014.  You'll pay the $330 penalty with your amendment.  (The IRS may bill for interest later, perhaps around $20.)

2.  No, you do not need to calculate earnings on the excess 2014 contribution.  They are permitted to remain in the Roth IRA.