An excess traditional IRA contribution for tax yr 2018 was made on April 12, 2019 & withdrawn on April 18, 2019. $0.04 gain. Do I report the contribution on 2018 return?

[atwbk2hgzgyz5te2]

April 12, 2019: I incorrectly made an excess contribution for tax year 2018 to a traditional IRA of $6,500.
Two hours later I submitted the form to have the excess amount transferred out of the account. The transaction would complete after April 15, 2019.

April 15, 2019: I submitted a Federal extension and made an estimated tax payment that assumed that no 2018 IRA contribution was made.

April 18, 2019: The excess $6,500 + $0.04 earnings was confirmed to be transferred out of the traditional IRA account.

Should I change my 2018 tax return to indicate that I made a $6,500.00 IRA contribution for 2018 before filing it?

[macuser_22]

If the excess was removed, then there is nothing to report in 2018.    Don't enter the contribution at all.

In 2020 you will receive a 2019 1099-R for the return of contribution, but it will not be taxable since the earnings are less then 50 cents so they round to zero.

[Ventura]

how much will be in box 1? what code will be in box7?

[macuser_22]

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@Ventura wrote:

how much will be in box 1? what code will be in box7?

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That depends on your circumstances and what you did.

[Ventura]

I like to know the 1099-R receive next year, is for which year? what's the amount in box 1? which code in box7?

[macuser_22]

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@Ventura wrote:

I like to know the 1099-R receive next year, is for which year? what's the amount in box 1? which code in box7?

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If the excess was returned in 2020 the  you will get a 2020 1099-R.

If you asked for a return of excess and not a normal distribution then the amount of excess plus any earnings attributed to the excess will be in box 1 and any earnings in box 2a.

The box 7 code depends if it was a Roth or Traditional IRA and if it was a 2019 excess returned in 2020 or a 2020 excess returned in 2020 - they are all different.

[Ventura]

"The box 7 code depends if it was a Roth or Traditional IRA and if it was a 2019 excess returned in 2020 or a 2020 excess returned in 2020 - they are all different."

It is traditional IRA and it is a 2019 excess returned in 2020 before tax deadline.