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Retirement tax questions
Yes, this is a problem with you are in the phase-out range for Roth IRA contributions. Gains required to accompany the returned contribution increase your income, making more of the original contribution be excess. It might be simplest just to pay the 6% penalty on the additional amount of excess contribution and resolve the excess in 2022 by making a regular distribution equal to the additional amount of excess, allowing the gains on the additional excess to remain in the Roth IRA.
‎April 10, 2022
7:34 PM