Roth Excess

martymoose — Sat, 29 Jan 2022 16:57:35 GMT

Made a roth WITHDRAWL to remove an excess contribution ( including earnings ). Is a withdrawl considered a distribution? To me they are different.

Re: Roth Excess

DanaB27 — Mon, 31 Jan 2022 13:13:26 GMT

No, a return of excess contributions and earnings is not treated as a regular distribution.

The excess contribution part is not taxable but the earnings are taxable for the year in which the excess contribution was made (for example with a 2021 excess contribution the earnings will be taxable in 2021). A 10% early withdrawal penalty applies on the earnings if you are under 59 1/2.

topic Roth Excess in Deductions & credits

Roth Excess

Re: Roth Excess