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Roth withdrawal

Forum|Forum|3 years ago
March 12, 2023
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Hello. I have a Roth for about 10 years now. I found out that I was not qualified to contribute for 2020, 2021, and 2022. I asked for the excess to be withdrawn after I already filed my 2021 tax. In 2023 I received three 1099R. One with 8, J codes, one with J code, and one with J,P codes. I entered all three forms into Turbo when I’m doing my tax this year, and haven’t amended my 2021 tax yet. I have several questions. 1) do I need to amend my 2021 tax before I do my 2022? 2) for the box Roth IRA contributions prior to 2022, do I take all my contributions in prior years minus 18000 for those three years (my contributions ended up to be a loss) so the amount shown in 1099R gross distribution are less than what I actually contributed. On the box excess Roth IRA contributions for prior years do I include 2021 excess also even though I haven’t filed the amended return? Thanks.

Best answer by MAK70

1. You do not have to wait for the IRS to process the 2021 tax return before preparing your 2022 tax return. 2. Because you removed the excess contribution, you subtract the 18000 for prior years. 3. For the box excess Roth IRA contributions for prior years you do NOT include the 2021 excess if you send your 2021 amendment (I would recommend certified mail if you do not e-file to have proof of date which will apply regardless if how long it takes the IRS to process the amendment) before you prepare the 2022 return.

M

MAK70Answer

1. You do not have to wait for the IRS to process the 2021 tax return before preparing your 2022 tax return. 2. Because you removed the excess contribution, you subtract the 18000 for prior years. 3. For the box excess Roth IRA contributions for prior years you do NOT include the 2021 excess if you send your 2021 amendment (I would recommend certified mail if you do not e-file to have proof of date which will apply regardless if how long it takes the IRS to process the amendment) before you prepare the 2022 return.