Over Contributed Roth IRA

jigss1987
jigss1987 Member Posts: 1 Newcomer
in Filing my taxes

Hello,

I made over contribution in 2021. I didnt realize that mistake until later 2023. I withdrew the amount (at loss, so no earnings) in December 2023 to avoid further issues (i later realized that my MAGI was lower than threshold for full contributions). I received 1099-R after I filed my taxes so I didn't include it.

Based on my research I need to follow the following steps:

  1. 2021-I need to file amendment and pay 6% as per 5329.
  2. 2022-I need to file amendment and pay 6% as pe 5329.
  3. 2023- No penalty as I was qualified for full contributions and also I closed the account before Dec 31. However, i still need to file amendment to include 1099-R.

My questions:

  1. Are above steps correct? Am I missing anything?
  2. Should I file amendments in order? Or can I send all amendments together?
  3. Since I closed ROTh ira account at loss, any way to deduct that loss in 2023 return?

Thank you for your help!

Tagged:

Categories