- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
The amount recharacterized is not taxable, but you are subject to a penalty for over-contributing to your IRA in the amount of the earnings in this case. The earnings are not taxable until you withdraw them. Since they are still in the IRA, you don't pay tax on them, but you are subject to a 6% penalty for each year the excess contribution remains in the account.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
‎February 13, 2025
1:35 PM