topic What should I do next after my Roth IRA excess contribution removal? in After you file

What should I do next after my Roth IRA excess contribution removal?

haveridley — Sun, 14 Jul 2019 20:29:50 GMT

For the 2018 tax season, I contributed $3,483 more than I was allowed to for my Roth IRA due to a low AGI. In response, $3,456.39 was removed from the account (with a $26.61 net loss) and then $3,418.96 was moved as cash to an individual brokerage account, which was then moved to a bank account.

I filed my taxes stating that the full amount of $3,483 was removed. However, my Annual IRA Distribution for 2019 is $3,418.96 with $37.96 left in Cash and Cash Investments in the Roth IRA account. What are my next steps? Should I remove the $37.96 in the account as well, or withhold from doing any further action until the next 1099-R in January? Will I need to amend my taxes in that case? Thank you!

Re: What should I do next after my Roth IRA excess contribution removal?

Critter — Sun, 14 Jul 2019 20:34:26 GMT

When you had the broker remove the excess contribution the earnings were supposed to also be withdrawn ... have them removed and file the 1099-R on the 2019 return.

Re: What should I do next after my Roth IRA excess contribution removal?

haveridley — Sun, 14 Jul 2019 22:11:33 GMT

Based on the calculations the broker had, there weren't any earnings, just the net loss since the amount at the time of withdrawal was less than the original amount contributed. So I assume that the amount of cash left over was part of the excess in that case and should also be moved out? Thank you!

Re: What should I do next after my Roth IRA excess contribution removal?

Critter — Sun, 14 Jul 2019 22:53:28 GMT

If there were no earnings then there is nothing more for you to do.... you solved the issue and this is done.