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Without paying much attention, I made my usual contribution to my and my wife's Roth IRAs back in the beginning of 2007.

It wasn't until I was doing my tax return with TT, that it warned me that I made an excessive contribution of $5K to each Roth IRA. This was because I did not meet the earned income test; since we are living on my pension and our Social Security. If I leave it as is, I need to pay a $300 penalty on each Roth IRA (and continue paying each year until I withdraw the $5K).

From what I have come up with so far, I should be able to avoid the penalty if i withdraw the $5K from each account prior to April 15th. However, It also indicates that I will need a 1099R. The 1099R is supposed to have code P and Code J - but will indicate 2008. TT says this can be used for the 2007 return, but I ned to indicate the 1099R is for 2008.

- Does this sound right ?
- If so, assuming I make the withdrawal in a week or so, but do not get the 1099R by April 15th, what happens at that point. I would like to avoid filing amended returns and getting into the headlights.

btw - there is at least $5K in cash in both accounts now.
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