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New Member
posted Jun 1, 2019 10:07:22 AM

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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1 Best answer
Level 15
Jun 1, 2019 10:07:23 AM

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.

1 Replies
Level 15
Jun 1, 2019 10:07:23 AM

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.