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Retirement tax questions
You didn't say what year you specified for the contribution.
return of excess contribution:
before tax filing date including extension properly requested: positive earnings allocable to the excess are taxable on the Line 4b for the year of the contribution. negative earnings are ignored; in which case, for purposes of basis, consider the original requested amount as returned.
You must use the "return excess plus earnings" form.
If contribution for 2023 (2024), INSTEAD
if you are allowed a Roth contribution in 2024 (2025), you can use that to offset the excess of $996.
You will pay a penalty of 6% which is $60, everything will stay in the Roth.
‎February 28, 2024
5:37 PM