Excess Non-Deduc’ contri’ in 2022, taxes filed April 2023, excess returned June ’23. File amended 8086 with 1040X. section 301.9100-2 verbage at top of 1040x. No 5329.

[klawaz-gmail-com]

Hi folks, earlier this year, I realized I had been incorrectly making NON_DEDUCTIBLE contributions to a TRADITIONAL IRA with no earned income.  I’ve searched the forum, and nothing quite fits my situation (most deal with ROTH IRAS, recharacterizations, and/or deductible contributions).
Here are some facts and comments for your consideration:
i). Excess Non-Deductible contribution made in Jan 2022.
ii). 2022 taxes filed in April 2023 
iii). Excess contribution returned (minus loss) in June 2023 (no gains).
My assumed procedure for this situation for filing an amended return by October extended deadline is as follows:
Prepare and file Amended 8086 form to show $0 non-deductible contribution and IRA corrected basis with 1040X.  
“Filed pursuant to section 301.9100-2” will need to be shown at the top of form 1040x (I don’t know if Turbotax allows this type of annotation).
No 5329 is required in this situation because the extended deadline hasn’t passed and no 5329 was filed in April 2023 as it wasn’t needed (non-deductible contribution was shown on the original 8086).

[Loretta P]

Hello @klawaz-gmail-com,

Quick question, what state do you reside in?

[klawaz-gmail-com]

Hi, AZ.

[Loretta P · Accepted solution]

Thank you @klawaz-gmail-com.

As you had the excess contribution returned to you in June 2023 (no gains) this is before the extended deadline of your original return, so no penalty should be incurred.  

Yes you need to file a 1040-X amended return including the Form 8086 to show a $0 contribution and corrected IRA basis.

You will need to print and mail your form 1040-X and hand write on the top "Filed pursuant to section 301.9100-2."

After reviewing Instructions for Form 5329 it does not appear you will need to include this form in the amended return.

[klawaz-gmail-com]

Thank you, that confirms thinking.  Does the whole return need to be included in the amended return (everything else other than the original 8606 and original 1040) along with the amended 8086 and 1040X, or just the 1040X and amended 8086 forms?

[Loretta P]

When you complete the 1040-X it should also include any forms that were updated starting with page 1 & 2 of the 1040.