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Retirement tax questions
You need to file a 2024 return to report the ineligible contribution and pay the 6% penalty, even if you had no other income and owe no other taxes. The penalty is not offset by your standard deduction or other deductions or credits.
Then for 2025, you would report the withdrawal. The $800 earnings will be taxable plus 10% penalty if you are under age 59-1/2.
6 hours ago
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