Hello!
I made a big mistake 😅 and accidentally made excess contributions to my Roth IRA in both 2021 and 2022. I am trying to correct this in 2023 so it essentially "rolls over" the past excess contributions.
I have contributed $3500 in 2023 so far but would like to remove those contributions before the tax filing deadline so it looks as if I've never contributed in 2023. Vanguard says I should take out approx. $5400 to cover any earnings, even though I only put in the $3500.
When prompted on the FreeTaxUSA program, should I put that I removed $3500 or $5400?
Also, do I have to report the earnings now or wait until I get the 1099-R in 2025?
I'm in Florida if that matters.
Thanks for the help! I appreciate any guidance!!