Excess Roth Contributions

[Tomcpa04]

It appears that all the questions related to Excess Roth Contributions are answered but refer only to the current year excess and I get that. However I have requested from my broker not only to have my current year Excess Contribution returned (2020) but also my Excess Contributions for 2017 & 2019. My broker informed me that there will be 3 separate distributions made and the figures are as follows: 2020 Distribution  equals $7,220.68 made up of $4,200 the 2020 excess contribuution I made plus $3,020.68 in taxable earnings. This distribution I understand and since I will receive this distribution before I file my return I have included the earnings ($3,020.68) income on my 2020 return and paid the tax & 10% on the earnings no exceptions apply. I would pay no 6% penalty on this for 2020.  However. I'm not sure how to handle the 2 other distributions for 2017 & 2019. Excess Contribution for 2017 is $350. and the Excess for 2019 is $1,050.My thinking is I should amend 2017 showing a Gross Distribution of $350 and a Taxable Distribution of $0.00  The same would apply to the 2019 Distribution. I would still pay the 6% penalty on my 2020 Tax Return however since these distributions were received by me in 2021. On my 2021 tax return I would then not have to pay any 6% penalty at all. Based on the info from the broker no earning is calculated on either the 2017 or the 2019 Distributions. Is my thinking on this correct? I don't quite understand why no earning is included on the 2017 or 2019 Distributions. Any help will be appreciated.

[qbteachmt]

Are you looking for personal tax help, or is this for a client? You stated "my broker."

"However. I'm not sure how to handle the 2 other distributions for 2017 & 2019."

Those are all part of 2020 tax return, if you got to them before 2020 is filed. The 1099-R distribution will be for 2021, but the activity is for the prior tax year.

"On my 2021 tax return I would then not have to pay any 6% penalty at all. Based on the info from the broker no earning is calculated on either the 2017 or the 2019 Distributions. Is my thinking on this correct?"

No. Well, unless your total of all deferred account types took a loss over all those years, of course.

Go to the IRS site and read the instructions. Learn how the prorata computations are described. I also like to read the investment house instructions for how to handle excess, since they are communicating to regular non-CPA taxpayer investors.

It seems it's time you learned this more thoroughly for your own needs and for your clients' needs.