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Return of excess contribution - Traditional IRA

Forum|Forum|3 years ago
April 7, 2023
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Hello,

In March 2023, I had transferred $6K from my personal non-retirement account to Traditional IRA towards 2022 contribution with the goal to then transfer it to Roth IRA account (backdoor Roth). However, Fidelity personnel informed me that I will be heavily taxed per pro-rata rule as I have pre-tax funds in my Rollover account. So, based on their recommendation, I submitted return of excess contribution from my Traditional IRA account back to my personal non-retirement account. And, I checked today and it was completed on April 5th. I have completion statement from them as well.

Based on this, I think I do NOT need to include $6K Traditional IRA in my 2022 tax filing. Please advise.

Thanks!

Not A Product Question

Best answer by DanaB27

Yes, if you removed the full traditional IRA contribution plus earnings then you do not need to enter the traditional IRA contribution in the IRA contribution interview.

You will get a 2023 Form 1099-R in 2024 and the earnings reported in box 2a will be taxable income.

D

DanaB27Answer

Yes, if you removed the full traditional IRA contribution plus earnings then you do not need to enter the traditional IRA contribution in the IRA contribution interview.

You will get a 2023 Form 1099-R in 2024 and the earnings reported in box 2a will be taxable income.

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