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janes0
New Member

Excess trad. IRA contribution in 2018=$1983. Didn't treat it as a deduction. I withdrew $2100 in January 2019. Was this reportable in 2018 or do I report it in 2019? How?

I didn't know it was excess until January 2019, which is why I didn't withdraw it in 2018.  Now the 2019 1099-R includes the portion of the withdrawals made in 2019 that was actually return of excess contribution.
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DavidS127
Expert Alumni

Excess trad. IRA contribution in 2018=$1983. Didn't treat it as a deduction. I withdrew $2100 in January 2019. Was this reportable in 2018 or do I report it in 2019? How?

The earnings on the excess contribution made in 2018 but withdrawn in 2019 are reportable as income in the year you made the excess contribution, i.e., 2018.

 

Because you made the withdrawal of the excess contribution before the due date of your 2018 tax return, you will not be subject to the 6% tax on excess contributions.

 

As long as you did not deduct the excess withdrawal in 2018, you do not have to report the excess withdrawal amount in your income.

 

Click here for the section of IRS Publication 590A pertaining to excess contributions and the associated earnings.

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