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If I overcontributed to my Roth last year, but withdrew it before filing, the entire amount is listed as retirement income this year?

 
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2 Replies

If I overcontributed to my Roth last year, but withdrew it before filing, the entire amount is listed as retirement income this year?

Did you get a 1099-R?  What code is in box 7?
What is in box 2a?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
KyleM
New Member

If I overcontributed to my Roth last year, but withdrew it before filing, the entire amount is listed as retirement income this year?

Hi Jaynishimura!

According to https://www.irs.gov/publications/p590a:

"For purposes of determining excess contributions, any contribution that is withdrawn on or before the due date (including extensions) for filing your tax return for the year is treated as an amount not contributed." 

Based on this language, it's likely you do not have to report it as retirement income (a distribution) unless it earned interest. It's like it never happened and the tax treatment would be handled based on the original source of the funds.

Hope this helps!

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