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Retirement tax questions
To be more specific, the distribution must be made as a "return of contribution" with the amount distributed being the amount returned adjusted for investment gain or loss, not a regular distribution. (The rate of gain or loss is determined over *all* of the investments in the IRA account, the entire account balance.) If done before the end of 2019 it will be coded with code 8 (along with code 1 of you are under age 59½ at the time of the distribution.
If the the IRA gained value while the $4,000 was in the account, the gains distributed will be taxable. If you are under age 59½ at the time of the return of contribution, the taxable gains will be subject to a 10% early-distribution penalty.
There is still more than half a year left in 2019, so if you happen to work and and enough in the remainder of 2019 to support the $4,000 contribution for 2019, you can leave the contribution in.
If the the IRA gained value while the $4,000 was in the account, the gains distributed will be taxable. If you are under age 59½ at the time of the return of contribution, the taxable gains will be subject to a 10% early-distribution penalty.
There is still more than half a year left in 2019, so if you happen to work and and enough in the remainder of 2019 to support the $4,000 contribution for 2019, you can leave the contribution in.
June 7, 2019
5:04 PM