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Retirement tax questions
Great. Thanks.
Since there are no earnings on the $2131.65, I did not think that anything is reportable since there was a loss. I had to look things up on the link you provided for Pub525 and see if my simple tax brain could understand things. I found this:
Report a loss on a corrective distribution of an excess deferral in the year the excess amount (reduced by the loss) is distributed to you. Include the loss as a negative amount on Schedule 1 (Form 1040), line 8z, and identify it as “Loss on Excess Deferral Distribution.”
If my simple tax brain understands this, it like you said above that this year 2023, I report the loss of 55.06 (2131.65 - 2076.59 = 55.06).
April 12, 2023
12:36 PM