dmertz
Level 15

Retirement tax questions

No earnings are to be withdrawn with the $10.  Just like any ordinary earnings in your Roth IRAs, any earnings on the $10 will never be taxed as long as you do not distribute any earnings before your Roth IRAs are qualified.  The only the $6 of earnings already distributed with the $50 return of contribution are taxable on your 2024 tax return.

 

Make sure that you request a regular distribution of $10, not a return of contribution.  So that the custodian does not process the distribution as anything other than a regular distribution, mention nothing about this distribution being done n to correct an excess contribution.

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