Excess roth IRA contributions for current and prior years

[rewashp]

Hello,

I opened my Roth IRA in 2020 and contributed $6000 in 2020, $6000 in 2021 and $6000 in 2022, $2000 in 2023 but in February 2023 while doing taxes for 2022, I realized my income increased to not be able to contribute. I did a return of excess contributions of $2400 for tax year 2021 correction after tax filing deadline and return of excess of $6000 for tax year 2022 and $2000 for tax year 2023 before tax filing deadline. I received 3 1099R for tax year 2023. I have questions as to what to answer for these questions:

1. Enter total Roth IRA contributions for 2023 ($2240 was previously entered on 1099R. Do not enter this amount here)
2. Withdraw from Your Roth IRA Before 2023? (yes/no)
3. Enter Roth IRA contributions prior to 2023
4. Enter excess roth IRA contribution for prior years
5. Contributions withdrawn before due date of return

[DanaB27 · Accepted solution]

1. Since you removed the Roth IRA contribution for 2023 you do not enter any Roth IRA contribution for 2023 in the IRA contribution section.

2. If this was your first withdrawal in 2023 then say no.

3. You will enter $12,000 (exclude the contributions withdrawn before the due date).

4.  I assume you only had an excess contribution of $2,400 for 2021 for prior years, since you did not mention anything else.

5. If you entered the Roth IRA contribution for 2023 then you will enter $2,000 but if you follow number 1 above then this isn't necessary.

[rewashp]

Thank you Dana for the detailed reply. FYI: I was eligible for full contribution of $6000 for year 2020. I want to confirm the responses with you to remove any doubt.
1. $0 (since I removed the excess contribution of 2023 in year 2023 and received a 1099R)

2. yes (because I withdrew from Roth IRA in 2022 to remove excess contributions of 2021)

3. $12000 (for year 2020 and 2021 and I am counting the total contribution of 2021 because I did the correction for tax year 2021 after filing deadline)

4. $2400 ( I contributed in excess of $2400 for tax year 2021 and removed in 2022 but still enter this because of correction after deadline)

5. $0 (because I removed the 2023 contribution in year 2023 and received 1099R so this does not count)

@DanaB27Please reply yes for confirmation or correct me if I have something wrong. Thank you.

[DanaB27]

To confirm, you received the $2,400 excess for 2021 in 2023 not 2022? You stated you received a 2023 Form 1099-R for the distribution?

If you received all distributions in 2023:

1. Correct

2. Answer No

3. Correct, $12,000

4. Correct, $2,400

5. Correct

[rewashp]

yes, I received all the three distributions(for tax year 2021 after deadline, for tax years 2022 and 2023 before filing deadline) in 2023 and  three 1099-R forms. @DanaB27 Will that change any of your answers above?

[DanaB27]

No, my answer does not change. 

Since you received all distributions in 2023:

1. Correct

2. Answer No

3. Correct, $12,000

4. Correct, $2,400

5. Correct

[rewashp]

Thank you @DanaB27 for the prompt followups.