Correcting of 2020, 2021, 2022 Roth IRA Excess Contributions
Hello, I found this Forum provides great help.
My situation is complex.
1. I am age of 65 and found that my Roth IRA contribution of $7000 each in 2020, 2021, and 2022 was wrong. I am trying to return of Roth IRA contribution of $7000 each year now.
2. For tax year 2022, I contributed $7000 to Roth IRA on Feb 3, 2023 and requested $7000 return to my brokerage, and received $6852 back on Feb 7 after NIA.
3. For tax year 2021, I contributed $7000 to Roth IRA on 12/28/2021. I am about to request $7000 return to my brokerage.
4. For tax year 2020, I contributed $7000 to Roth IRA on 01/05/2021. I am about to request $7000 return to my brokerage.
Questions:
1. Can I file 2022 tax return with 5399 before 4/15/2023?
2. When should I request Return of 2021 Roth IRA Excess contribution of $7000 and file 1040x with 5399 for $420 penalty?
3. When should I request Return of 2020 Roth IRA Excess contribution of $7000 and file 1040x with 5399 for $840 penalty?
4. Any order of requests? Return of 2021 Roth IRA excess contribution first, and then Return of 2020 Roth IRA excess contribution?
5. How to report 1040x and Form 5399 with penalty for 2020 and 2021? I am using TurboTax, but have a hard time to understand. For 2022, TurboTax says I create Form 5399 for 2023 and file Fed tax of 2022. For 2021 and 2020, I need 1040x. I think it is right, but filing 5399 is complex to understand.
6. Any help can be appreciated. Hung
Permalink Submitted by Alan - IRA critic on Thu, 2023-02-09 02:08
Permalink Submitted by Hung Song on Thu, 2023-02-09 05:24
Thanks much for your great explanations and I will try file them properly.Hung