Roth Excess

martymoose · ‎January 29, 2022

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

DanaB27 · ‎January 31, 2022

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.

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