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Retirement tax questions
Thanks for the prompt reply.
@dmertz wrote:I'm not sure what you mean by "2022" Roth IRA... I'll assume that you mean that you contributed $6,000 to a previously empty Roth IRA account.
To be clear, I contributed $6000 to my Roth IRA for the 2022 tax year. That same Roth IRA account previously had $20,000 inside from previous tax years.
The attributable gain or loss is determined over the entire account, not just the investment that you made with the excess contribution unless the account contains nothing but the excess contribution.
As for this, I was attempting to just isolate the $6000 I contributed for tax year 2022 in my Roth IRA account and not for any previous years. The following is an explaination of how my brokerage calulcates the attributable gain or loss from the $6000: "The
earnings or loss applicable to the recharacterization were calculated based on the method outlined in IRS
Notice 2000-39 and IRS Final Regulation 1.408-11. The calculation is based on the total earnings in
your IRA during the period the IRA held the contribution or conversion-specifically from the business day
immediately prior to the contribution or conversion deposit date to the business day immediately prior to
the date you recharacterize, known as the computation period. "
Would any of the info I provided change the taxable amount you helpfully suggested?