Need help on excess IRA contribution

Hello, first of all just want to say how great this forum has been for useful IRA discussions, I have been frequenting for sometime now!
Please advise on my situation-
I have been making Roth IRA Excess contributions for

2017 – $5500
2018 – none
2019 – $6000
2020 – $6000

Realized after filing 2020 taxes and getting returns in 2021!

Removed excess by distribution immediately for $11500 (2017+2019) and back door roth for 2020. Now filing tax amendment 1044X for 2020,

1. Do I add 5329 for each year from 2017 to 2020? Or only 2018 to 2020?

2. Will my 2021 June excess withdrawal be considered for 2020 tax year, as distributions happened before 10/15 deadline for 2020 or will they be treated as 2021’s?

3. For line 20 in Form 5329 for 2020, do I show $11500, or zero?
As I removed before amendment deadline for 2020

4. Will I be paying 6% tax for 2020 also for $11500 for my 2017 excess, or just 2017, 2018, 2019?

5. Should I include 8606 for excess distribution in 2020 tax amendment as well as for 2021 when I receive 1099R?

6. If my filing date hasn’t crossed 3 years from filing day, do I submit 2018 year tax amendment for excess? (Note: No earnings withdrawn)

7. Left my meager earnings of 300$ in Roth, am I to withdraw that to correct excess?



You need to complete a stand alone 5329 for 2017-2019. the 6% excise for 2017 5329 (6%) is applied to 5500. The 2018 5329 also applies to 5500, since 2017 excess still not removed. I assume you qualified for a regular contribution in 2018, but if you qualified and did not make a TIRA or Roth contribution in 2018, the 2018 5329 will apply the 2017 excess to 2018. Follow the instructions for Part IV of the 5329. The 2019 5329 will apply the excess to 11,500 since you now have 2 years of excess contributions. The 2020 5329 can be included in the 1040X along with Form 8606 to report the 2020 TIRA non deductible contribution from recharacterizing the 2020 Roth contribution as a TIRA contribution and also include an explanatory statement regarding the recharacterization of the 2020 Roth contribution. The 2020 5329 will again apply the excise tax to 11,500 carried over from 2017 and 2019. 
 The 11,500 withdrawal of the 2017 and 2019 excess contributions will be reported on your 2021 8606. That distribution comes from regular Roth contributions so should be tax free.
Line 20 will be 0 since the distribution was not done until 2021. The 2021 5329 will show 11,500 on line 20. Removal by due date only applies to years where the due date has not passed. The due dates for 2017 and 2019 removal (with earnings) had all passed.
Yes. In total your 6% excise taxes will be applied to 34,000 for all years (5500 2017, 5500 2018, 11,500 2019 and 11,500 2020) because the excise taxes apply for each year the excess is not removed, not for just the year of the excess itself. 
2020 8606 is only to report the 6000 ND TIRA contribution following recharacterization of 2020 contribution. 2021 8606 will report the Roth distribution of 11,500, and the conversion of the recharacterized contribution back to Roth. The conversion taxes depend on whether you have some gain on the 6000 contribution before converting or if you have any pre tax balance from any other non Roth IRAs.
No. Only 1040X needed is for 2020. For earlier years, the 5329 forms will address the excess.
No, the excise taxes and removal of earnings are mutually exclusive. Because you owe the excise taxes on Form 5329, your earnings remain in the Roth. But your 2020 contribution was recharacterized by the due date and no excise tax will be due on the 2020 contribution, but any gains on that contribution were transferred to your TIRA, and then converted. 
Again, you will need a 2021 5329 to show the removal of the prior excesses, but there will be no excise tax due for 2021. There will also be a 2021 8606 to report the Roth conversion for income tax purposes, but how much of that conversion will be taxable depends, as indicated above.
The IRS might bill for late interest on the excise taxes you are paying this year for prior years. No way to predict whether they will or not.

Thank you, Alan, for taking time for such quick and detailed response! Much appreciated, and impressed as always!  Patrick M.

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