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Retirement tax questions
I've read in the case of a ROTH 401k you pay income taxes on excess contributions and earnings in the year you make a distribution not the year it occurs - Im just not sure if this applies to the ROTH IRA rollover. I don't believe the rollover constitutes a "distribution" in this case. So presumably the distribution only occurs when I remove it from the ROTH IRA. If I remove the excess plus all earnings as income tax in 2023 does that satisfy the excess contributions rules or must I still pay 6% excise tax for every year it remained in the ROTH IRA?
‎January 7, 2024
12:30 PM