dmertz
Level 15

Retirement tax questions

"On April 7, 2022, Accidently I initiated another $200 excess Roth IRA withdraw for 2021 with the 500 Index fund "in kind" to my regular brokage account.  Vanguard issued a distribution of $727.66 from my Roth and transferred the shares to my regular brokage account."

 

That doesn't make any sense unless you have a large amount of other investments in the Roth IRA that have had fantastic investment performance.  A $727.66 distribution for a $200 return of contribution in April implies a 275% investment gain in the Roth IRA in a month.  The S&P 500 has gained less than 10% in that time.  Seems more like a $700 return of contribution was requested (or at least that's what was processed).

 

A return of contribution is not eligible for rollover.  However, if this return of contribution has left you with less than the maximum permissible Roth IRA contribution or 2021, you have until April 18 2022 to contribute the difference.