Question
Excess traditional ira contribution withdrawn before 2017 tax filing deadline
In 2017, I made an excess contribution of $5,500 to a traditional IRA. In 2018, I withdrew the contribution amount of $5,500 plus $174.99 earnings and I am under 59.5 years old. I will not receive a Form 1099-R for this excess contribution withdrawal from my financial institution until early 2019. However, it's my understanding that I can create my own Form 1099-R to file along with my 2017 tax return, and have filled it in as follows:
- Box 1: $5,674.99
- Box 2a: $174.99
- Box 7: P, 1 (early distribution)
- IRA/SEP/SIMPLE Box: Checked
- Explanation: "Return of $5,500 excess contribution plus $174.99 earnings."
As a result, I will end up paying a 10% withdrawal penalty on my earnings (which comes out to be ~$18) and my earnings will be taxable as capital gains.
Am I good to go, or did I go wrong somewhere?
