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MarinaEA
Level 4
03-06-2023
11:14 AM
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Two ineligible $6,000 contributions were made on 9/7/22 and 3/16/21 to Roth IRA. The total account value at the moment is $12,661. The income is over the limit.
What is the best way to handle this now? To my understanding, need to withdraw both since recharacterization to a traditional IRA makes no sense since there will be penalties anyways for the 3/16/21 contribution.
Also, the 2021 contribution and penalty are not reflected on 2021 returns. Do we need to amend 2021 return to include a form 5329, or can we just mail a form 5329 without amending the entire return?
To my understanding, if we withdraw all of it by the year end, then no penalty for 2022 contribution? Would anything need to be reported on 2022 returns? I am suspecting the earnings would need to be reported as income on 2022 returns or on 2023 returns ?
3 Comments 3
qbteachmt
Level 15
03-07-2023
12:32 PM
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This is a duplicate, asked twice, and answered here:
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"Level Up" is a gaming function, not a real life function.
"Level Up" is a gaming function, not a real life function.
MarinaEA
Level 4
03-07-2023
12:39 PM
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Do we need to amend the return to include a form 5329, or can we just mail a form 5329 without amending the entire return? Not able to find an answer to that question.
qbteachmt
Level 15
03-07-2023
12:46 PM
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Once again:
Never ask Twice, because it makes it harder for peer volunteers to follow, find, answer, or respond to other answers. Your other posting has updates. Make sure to read them.
*******************************
"Level Up" is a gaming function, not a real life function.
"Level Up" is a gaming function, not a real life function.
