sangwooc1
New Member

Retirement tax questions

Please help. I am a college student and I am new to Roth IRA. I did not know that I need to have income in order to contribute. I had $4000 saved up from birthday gift to odd jobs and contributed in Roth IRA vanguard. Later I realized that I need to have taxable income which I did not. So, I did an early withdrawal from Roth IRA (I did not do the excessive contribution removal, I just didn't know at that time). When I request early withdrawal they asked me if I wanted to either 1) not withhold federal income tax, 2) 10% of federal income tax I wanted to be withheld. And I was stupid enough to choose federal income tax withheld 10% and state tax as well. It took me awhile to realize that money I contributed to the Roth is already taxed but I was not aware. Now, vanguard only gave me back $3600 and took $400. how can I get $400 back? I did not have any taxable income last year 2017 and the contribution $4000 was from years of saving..please help. Gain from the contribution was only $40 dollars