Hello. I am in the exact same situation as the original post. i.e. we made contributions that we have now discovered are not tax-deductible into a tax deferred IRA for my wife and will withdraw them this month (March 2024).
One point I'm not clear about....
I read on a Fidelity web page (see FAQs at the bottom of the page https://www.fidelity.com/retirement-ira/excess-ira-contributions ), that "the SECURE 2.0 Act of 2022 removed the 10% early withdrawal penalty on earnings removed with excess and non-deductible contributions for IRA owners under 59.5. However, earnings must be included in income in the year the excess or non-deductible contribution was deposited into your IRA.
I understand this to mean that earnings from the removed contributions must be included in our income for the 2023 tax year, as that was when "the non-deductible contribution was deposited into our IRA"
So do I need to include the gain as income for my 2023 tax return - and if so, please explain how to do that in TurboTax desktop edition?,
or am I misunderstanding something?
thank you !
Mark
