Hello,
I just withdrew (Feb. 6, 2025) my total May 2024 Roth contribution of $8000 (made for tax year 2024) and my broker will figure the Net Income Attributable (NIA) and remove that as well.
They indicated I will receive a 1099-R at end of 2025 with the NIA earnings which will be taxable... they said taxable and reported with 2025 tax return since that is when I received the earnings, but I am not sure this is correct?
Do I need to somehow create a "dummy" 1099-R for 2024 and pay tax on the NIA this year, or can it wait until 2025 when I have the 1099-R in hand? I don't know what that 1099-R will look like, or if I will need to file an amended 2024 tax return, with that new 1099-R, to pay the tax on the NIA; OR, can I just use that 1099-R for next year's 2025 taxes? Part of the earnings I guess technically were earned in 2024 and part in 2025, since the NIA spans two years, but I am receiving the full earnings in 2025. I don't anticipate penalties, but does the IRS charge interest on taxes paid late with an amended return?
Too many questions, I know!
Thank you for any help.
