Question

Excess IRA contribution, same year in cash - will I get the required 5% state withholding back?

Forum|Forum|6 years ago
May 18, 2020
1 reply
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I made an honest mistake and transferred $6000 x 2 into current year 2020 contribution. I realized the mistake hours later but was not able to reverse the excess $6000. Since there's no earning, I will have no federal tax penalty. But the state of Massachusetts requires a 5% state tax withholding for removal of excess contribution. Will I be able to claim that when I file taxes for 2020? Thank you!

Not A Product Question

macuser_22

Employee

Yes. Your 2020 1099-R should have the state withholding in box 12 which will be applied to other state withholding and used to offset any state tax or add to your state refund.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**