Question

I had my broker return an excess IRA contribution of $50, but they only returned $49.49.Do I need to have an additional Return of Excess of $0.51?

Forum|Forum|4 years ago
December 22, 2021
2 replies
0 views

I had my broker return an excess IRA contribution of $50, but they only returned $49.49, due to the proportionate loss.
Do I need to have an additional Return of Excess of $0.51?

TurboTax Premier Online

Critter-3

No ... it is close enough for government work. The 6% penalty on 51 cents is 3 pennies ... LOL

Hal_Al

Employee

Treat it as the full $50 being returned. No penalty is due.

Your investment incurred a loss while it was in the IRA. Had there been a gain, e.g. the IRA return $50.51, the gain (51 cents in this case) would be reported as taxable income and taxed as ordinary income. But, you may not deduct a loss in an IRA. So, in you case the 51 cents is ignored.