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New Member

Roth IRA and no income

I think I messed up. Last year I only had unemployment income. I transferred $6,000 from my savings to my Roth IRA account without thinking about the earned income. Now what? Can I transferred out, back into savings, a traditional IRA or what?

 

Thanks 

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Employee Tax & Finance Expert

Roth IRA and no income

Without earned income, you also cannot contribute to a Traditional IRA.  However, you can remove the contribution from your Roth IRA.

 

Ask your financial institution to distribute it as a "withdrawal of excess contribution".  You will then report that withdrawal on your 2020 tax return, assuming you make that withdrawal now.  

 

 

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1 Reply
Highlighted
Employee Tax & Finance Expert

Roth IRA and no income

Without earned income, you also cannot contribute to a Traditional IRA.  However, you can remove the contribution from your Roth IRA.

 

Ask your financial institution to distribute it as a "withdrawal of excess contribution".  You will then report that withdrawal on your 2020 tax return, assuming you make that withdrawal now.  

 

 

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

View solution in original post