Excess contribution to Roth IRA tax

Forum|Forum|4 years ago
March 12, 2022
1 reply
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While completing my 2020 tax return last year, I realized that I had contributed more than my earned income to my Roth IRA. I then made the correction within that tax year deadline. This year, I received a 1099-R showing that I withdrew that amount. The 1099-R has left all other boxes blank, so I am unsure if this means I owe taxes on them or if blank means zero? There is code J and 8. I wonder if this is incorrect. Also, I did not earn anything from that excess contribution when it was still in my Roth IRA, I only lost money, so I wouldn't have any taxes on the earnings. But do I still owe taxes on the excess withdrawal even though I corrected it in the same year?

T

ThomasM125

You won't owe any taxes since there was no income reported. You would only owe taxes and potential penalties on the income portion of the withdrawal. Since the boxes are left blank, that is the same as $0 being reported.

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