Question

Excess Roth Contributions

Forum|Forum|3 years ago
March 14, 2023
1 reply
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I have excess Roth IRA contributions for 2022. I have since removed the excess contributions, but am unsure how to process this for my 2022 return? Is this reported on this years return, or will it only come up next year when I show the withdraw on my income? TIA

M

MinhT1

If you withdrew your 2022 excess contribution to your Roth IRA before the due date of the 2022 tax return (April 18, 2023), make sure that you also withdraw the related earnings.

On your 2022 tax return, you do not report the excess contribution as it has been withdrawn. The earnings have to reported and taxed in 2022. These earnings are also subject to 10% early withdrawal penalty if you are younger than 59 1/2.

If there is a loss, that loss is not deductible.

When you receive the 2023 form 1099-R (in 2024) for this withdrawal, there is no further action needed.

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