KrisD15
Expert Alumni

Get your taxes done using TurboTax

The excess was made in tax year 2022.

Following the directions given in the other answer, you will still pay the penalty on the excess for tax year 2023. 

Make the distribution for the excess and any earnings in 2024. 

Next year, you will report that as a non-qualifying distribution (to zero out the excess) and you will then pay tax on that distribution (report that it was NOT used for medical expenses).

The excess will no longer be reported after tax year 2024.

 

If you made distributions in 2023, you could do the same thing for 2023, claim part of the distribution (the amount of the excess) as non-qualifying. 

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