My daughter, accidentally opened up a ROTH IRA for 2024
I just found out that she opened it up with past savings and not earned income
I am now helping her return excess of contributions before tax filing April 2025 to avoid any penalties
Based on what she place in ROTH IRA, 7000 dollars with earnings of 1800 dollars
how much taxes will she have to pay on that 1800 dollars
She is a student and is at the lowest tax bracket.
will brokerage account, fidelity , report this out as long term capital gain
I made sure she sold stock from older trades, not sure if short or long term makes any difference when you have to sell stock to return of excess contribution
She opened up past ROTH IRA when she had a job few years ago.
