Roth IRA excess contribution
Hi,
On Saturday Mar 17th 2012, I initiated a transfer to contribute $5000 to my Roth IRA for 2011. I hadn't done my taxes, and the next day, I realized I was ineligble for a Roth contribution for the 2011 tax year. I tried to get the pending transfer cancelled on Monday March 19th, but Vanguard told me they couldn't cancel that. So today Mar 20th 2012, I asked them to remove that excess contribution. They said they will issue a form for 2012 (1099-R). They also mentioned two additional forms that I need to look into 8068 and 5329.
I'm still confused, what I need to do for filing my taxes this year and maybe next year to deal with this excess contibution which lasted but one day, and will likely not generate any income(loss) (I deposited it to a money market fund)
Questions
a) Do I need to fill out any forms this year related to this excess contibution which I asked to get withdrawn a day later. Conribtuion made/withdrawn in 2012 for tax year 2011.
b) If any income is generated, is that considered 2011 income or 2012. So basically do I need to report anything for this year, or is all next year.
c) What are the forms that I need to file assuming some small gain
2011 : 1099-R (yes/no)
5329 (yes/no)
8068 (yes/no)
2012 : 1099-R (yes/no)
5329 (yes/no)
8068 (yes/no)
I'not 59.5 or over, so I guess the "excess withdrawal" from the Roth IRA, means if any income was generated it would be getting a 10%penalty for which I need 5329. If there aren't any, do I still need to file the form?
Also my understanding is that the 8086 form needs to be filed only if I was recharecterizing the Excess roth contribution to a traditional IRA. Is that correct?
Thanks in advance for your help.