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Retirement tax questions
To verify, you made a traditional IRA contribution for 2021 but because of your income the contribution was not deductible and therefore you have a basis reported on Form 8606.
You have the option to ask your financial institution for the return of your contribution until the due date if you didn't take the deduction.
If you want to keep the contribution then you will have to track your basis since you cannot remove only your basis from the traditional IRA when you have pre-tax funds. When you have pre-tax funds and basis in a traditional IRA then the pro-rata rule applies and each distribution will have a taxable and nontaxable part.
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March 30, 2022
4:48 AM