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Retirement tax questions
Hello dmertz!
Thanks again for your generous help last year, we successfully filed my daughter's return!!!
"When there is only a single return of contribution from an account in a given year, there is no reduction in taxable income for the loss attributable to the contribution being returned; the Form 1099-R would have a zero in box 2a. When there are two returns of contribution from the same account where only one of them has an attributable loss, it's not clear to me if the two adjustments are aggregated (which in this case would result in $7.13 in box 2a) or if the attributable loss just disappears (which in this case would result in $20.24 in box 2a). My guess is that they would be aggregated and box 2a will have $7.13"
I though you might want to know this details, I received the 2022 Form 1099-R,
box 1 is $4655.29 (3398+20.4)+(1250-13.11)
box 2a is 20.40 (the attributable loss just disappears)
I remember you told me that this 2022 From 1099-R gets reported on the 2021 tax return, is that correct?
I also received a 2nd 2022 From 1099-R, I guess this is the regular distribution and rollover form, I will need to report this one on her 2022 tax return correct?
She also contributed $6k to her Roth IRA on 3/1/2022, but she didn't get a job during the summer, only received scholarships of $3500. Does she need to request a return of contribution again? Or can she rollover that money to her 2023 Roth? She secured a summer intern job already, will be making more than $6k this year!
Thanks so much for your kind help!