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rrwalters01
New Member

Took my IRA contributions out early but I'm getting taxed more money than what I've gained in my IRA (1099 R). What can I do to fix this situation?

 
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fanfare
Level 15

Took my IRA contributions out early but I'm getting taxed more money than what I've gained in my IRA (1099 R). What can I do to fix this situation?

If you took a deduction in the past for contributions, now it is  taxable when you remove it. In addition, you will pay a penalty tax. There's nothing you can do about that.

Some (all?) states allow an adjustment for contributions that could not have been deducted on your state return when you made the contribution.

View solution in original post

1 Reply
fanfare
Level 15

Took my IRA contributions out early but I'm getting taxed more money than what I've gained in my IRA (1099 R). What can I do to fix this situation?

If you took a deduction in the past for contributions, now it is  taxable when you remove it. In addition, you will pay a penalty tax. There's nothing you can do about that.

Some (all?) states allow an adjustment for contributions that could not have been deducted on your state return when you made the contribution.

View solution in original post

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