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Diane, single and age 49, made a $5,000 contribution to her traditional IRA in 2022. Her compensation for 2022 was $4,000. She filed a Form
Diane, single and age 49, made a $5,000 contribution to her traditional IRA in 2022. Her compensation for 2022 was $4,000. She filed a Form 4868 for an extension until October 17, 2023, to file her 2022 return. In order to avoid the 6% additional tax on excess contributions, Diane must do which of the following? Answers A. Withdraw the $1,000 excess contribution and all interest earned on the $1,000 by October 17, 2023. B. Withdraw the $1,000 excess contribution and all interest earned on the $1,000 by December 31, 2022. C. Withdraw the $1,000 excess contribution and all interest earned on the $1,000 by April 18, 2023. D. File an election to deduct the $1,000 on her 2023 return by attaching a statement to her 2022 return
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