Just making an example,
Assumption: In July 2020, I contributed $1000 in traditional IRA for year 2020 & $5000 in Roth IRA 2020, at that point, my income allows me to contribute up to $6000.
But for individual brokerage account: if I sell some stock in December 2020 and claim capital gain for year 2020, which will actually cause me not qualified for IRA contribution.
Above assumption applies to both below two cases:
1) IRA accounts also have capital gain, what will happen to the IRA accounts (I actually should not contribute due to income limit, but I have already made the contribution in July)?
2) Both IRA accounts lost money or lost all the money (wiped out when option trading), what will happen to the IRA accounts? I should not contribute to IRA in July but I have already made the contribution, but I cannot take any money out of IRA since I lost everything in IRA accounts.
Thanks.
