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How to report capital gain from an early withdrawal under the Roth IRA account without 1099-B?

Hello TTLC community:

 

If I have done an early withdrawal from the Roth IRA account with a gain (short-term capital gain + interest), how do I report this in my tax return?

My story is a bit complicated, I’ve made a mistake of recharacterizing an after-tax IRA contribution of $6,000 for 2021 in May 2022, after I filed my 2021 return on Apr 18, 2022. The initial non-deductible IRA contribution was done on Apr 14, 2022, right before the tax due date.

Not realizing my mistake until Sep 2023, I pulled out all the money, including gains, from Roth IRA; however, this happened before the extended 2022 tax due date (IRS automatically extended for CA residents due to natural disasters). 

 

The total amount I pulled out was $6,237.76, including $214.98 of short-term capital gain and $22.78 of interest. However, I did not receive any 1099-B form for the short-term capital gain because the transactions happened under the Roth IRA account.

 

Here’s my questions:

I know because of the early distribution from the Roth IRA, I’ll have to pay income tax for the gain ($237.76).

Do I report this manually in Form 8949 for the transactions even though I did not receive any 1099-B from the custodian?  But if I put it in 8949, will I end up being double taxed?

 

Or it’ll be calculated when I report the 1099-R for the Roth IRA account?

I do receive a 2023 1099-R (Box 1: $6,237.76, Box 2a: blank, Box 2b: Taxable amount not determined checked, Box 7: J) this year.

I think I need to manually update the Box 2a as $237.76 and then Box 3 as $214.98 (capital gain), is this correct?

 

Thank you very much for your help! Really appreciate it!!

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1 Best answer

Accepted Solutions
RobertB4444
Expert Alumni

How to report capital gain from an early withdrawal under the Roth IRA account without 1099-B?

You have it exactly right - update 2a to $238 and box 3 to $215.  That will tax the proper amount and charge you a penalty on the $238 withdrawal.

 

@evanku 

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2 Replies
RobertB4444
Expert Alumni

How to report capital gain from an early withdrawal under the Roth IRA account without 1099-B?

You have it exactly right - update 2a to $238 and box 3 to $215.  That will tax the proper amount and charge you a penalty on the $238 withdrawal.

 

@evanku 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

How to report capital gain from an early withdrawal under the Roth IRA account without 1099-B?

Thank you very much @RobertB4444, appreciate your reply and confirmation!

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