I contributed $6,000 to an IRA, however I discovered as I was filling out my tax return that I am only eligible to deduct $2,600.
I will withdraw the $3,400 from my IRA (as allowed per Pub 590a), so the contribution to my IRA for the tax year 2021 will only be $2,600. This will happen after April 18, but well before the October deadline (April 18 + 6 months).
Since I planned on withdrawing the $3,400 from my IRA, when I filed my tax return I did not include a form 8606 to report the $3,400 as a nondeductible contribution as required per Pub 590a).
Pub 590a states that since I am withdrawing the $3,400 contribution after filing my return I must 'file an amended return with “Filed pursuant to section 301.9100-2” written at the top.'
Since my end state (IRA contribution being $2,600, all deductible) will match what I originally filed, do I need to file any amended returns? Or do I need to amend it twice (once to included the form 8606, and a second time to include the withdrawal and removing the 8606)? Or is there some other option to do?
I assume my brokerage will be sharing with the IRS the activity on my IRA, and I want to make sure everything is on the up-and-up between me and the IRS.