@Lynne2929 wrote:
I am in the same situation, over contributed to my Roth IRA account in 2019 for 2019. Realized it in 2020 and requested my broker to remove the excess $40 Roth IRA Contribution. There were Negative Earnings/loss on the excess contribution. The net excess amount $33.78 was deposited into my non retirement account in 2020. My Question is: Do I need to report the return of the $33.78 on the 2019 tax return as a Gross Distribution (line 1) or will it be included in the 2020 return, when I get the 1099R?
Also, you state in the earlier reply that the negative earnings $-6.22 should go into line 2a. Turbo Tax keeps asking me to check this entry, is it truly a negative taxable amount or will I be paying $0 taxes on the loss amount?
Thank you!
If there were no taxable taxable earnings reported in box 2a then there is nothing to report in the 2019 tax return at all. A return of Roth after-tax contributions is not taxable or reportable, only the earnings are.
**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.**
