Hi, I read thru this series of Q&As, but I am still not quite clear on how to process it. My situation is I have a ROTH IRA with TD Ameritrade, and I trade a few times Energy Transfer (ET) stocks in 2021 and I had more than $1000 gains. Now I got K-1 from the ET, and also 990-T from TD Ameritrade. TD Ameritrade indicates it will file the 990-T to IRS on my behalf and take money out of my ROTH IRA to cover the tax due. So now my questions are:
- My account is ROTH IRA, do I have to pay tax on gains from trading ET stock?
- If I do, why does TD Ameritrade file 990-T for me, can I file it in my 1040?
- Is the money TD Ameritrade is taking out from my Roth ira account just tax withheld? Can I file a 1040-X to claim back the overpay part and put it back to my Roth IRA, because my calculation shows TD Ameritrade pays more than I should?
Thanks. I appreciate it if you can shed some light on my case.
