My situation: I had contributed $6000 to Roth IRA in 2022. But in December 2023, I found out that I cannot contribute any because my income is over the limit. So, I withdrew the $6000 in December 2023 knowning it has passed the October 15th deadline. So, I will need to pay 6% penalty for my 2022 return which I need to file a 2022 amendment.
Question for 2023 return when answering the question in turbo tax. I enter the 2023 form 1099-R with excess contribution of 6000 and box 7 is J. Then I complete the rest steps for the 1099-R form. After that I answer below follow up questions.
On question "Enter Prior Year Roth IRA Contributions", do I add up all of my Roth IRA contribution since I opened the account? I opened my Roth IRA in 2001. So, I will add up every year from 2001 until 2022? I did enter this number but this number does not show up anywhere in form 5329 of my return.
On question "Enter Excess Contributions", so I will enter 6000. Is that correct?
At the end, I have 0 additional tax penaly on my 2023 return. I think this is correct because I withdrew the excess contribution before December 31, 2023. Therefore, I do not have additional tax penalty for 2023 tax. Please confirm. And for the tax penalty for 2022 tax return, I will need to file a 2022 1040X amendment for it to pay for the 6% tax. Is my understanding correct?
Lastly, for tax return 2022, since I was supposed to pay the 6%, but I have not yet pay for it until later this year when I file an amendment. Will I need to pay interest for the 6% tax I owe to IRS?
Thank you in advance!
