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Retirement tax questions
>Why was it excess. Did you contribute more than your earned compensation to the Traditional IRA but converted it to the Roth without removing it ?
I had no income that year. I can't convert it to ROTH either since I won't quality.
>You contributed $6,000 and removed $5,500 - where is the other $500?
The value shrink. I took the whole amount out. That was what my custodian did.
>Your conversion is fully taxable and you have no basis in the IRA to offset the tax.
Line 2 only says to *reduce* the amount for any amount returned.
>It appear that you thought $5,500 was excess after it was in the Roth and removed it from the Roth.
Hmm. Not understanding what you mean. I put in 6k, converted 6.1k, took the whole thing out, so there should be no excess at all, since the entire amount was removed, just a bit circuitous.