Return of excess contribution - Traditional IRA

[gulsheenk]

Hello, 

In March 2023, I had transferred $6K from my personal non-retirement account to Traditional IRA towards 2022 contribution with the goal to then transfer it to Roth IRA account (backdoor Roth). However, Fidelity personnel informed me that I will be heavily taxed per pro-rata rule as I have pre-tax funds in my Rollover account. So, based on their recommendation, I submitted return of excess contribution from my Traditional IRA account back to my personal non-retirement account. And, I checked today and it was completed on April 5th.  I have completion statement from them as well. 

Based on this, I think I do NOT need to include $6K Traditional IRA in my 2022 tax filing.  Please advise. 

Thanks! 

[DanaB27 · Accepted solution]

Yes, if you removed the full traditional IRA contribution plus earnings then you do not need to enter the traditional IRA contribution in the IRA contribution interview.

You will get a 2023 Form 1099-R in 2024 and the earnings reported in box 2a will be taxable income.

[gulsheenk]

thanks a bunch, @DanaB27 

Best, 

Gulsheen