Excess Roth IRA Contributions for 2020, 2021, and 2022. Allowed Roth IRA Contribution for 2023

[DiverJudge]

I am 64 and my wife is 65. After filing my 2022 Taxes early last spring, I realized that the Roth IRA contributions we made for 2020, 2021, and 2022 we not allowed due to our MAGI being too high. We also made Roth contributions for 2023 but will not have an issue with these contributions as my wife retired in the summer of 2023.

In April of 2023, I withdrew the full amount of the IRA contributions for 2020 and 2021. We also withdrew the 2022 contributions plus the net attributable income for those contributions. For us, it ended up being the contribution less the net attributable loss as it was a bad year for the investment.

How do I properly amend our 2022 return and how will these moves affect our 2023 return?

[RobertB4444]

Report the full withdrawal amount in 2023 to match the 1099-R that you receive showing the withdrawal.  If you reported the Roth contributions on your prior year returns you will eventually receive letters from the service showing any penalty amounts due for the excess contributions.  You will pay them then.

If you did not report the Roth contributions on your prior year returns you will go back and amend those returns and report the contributions.  That should trigger the system to charge you penalties for the excess contributions made.  You can file the returns with payment for those penalties.

@DiverJudge