Discussion:Excess Roth IRA Contribution Withdrawal
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Revision as of 00:48, 6 March 2009
Discussion Forum Index --> Basic Tax Questions --> Excess Roth IRA Contribution Withdrawal
Discussion Forum Index --> Tax Questions --> Excess Roth IRA Contribution Withdrawal
| 6 March 2009 | |
| I have a client who opened up a Roth IRA in 2008 and made a $5,000 contribution. As it turns out, they are not eligible for 2008, due to AGI limitations. However, due to stock market losses, their account is below the $5,000 that was contributed. I have considered two ways to handle this situation:
1) Withdraw the remaining balance in the account and not report anything on the return 2) Withdraw the remaining balance in the account; apply the 6% excess tax on the difference between the $5,000 and the remaining balance; deduct a loss for the difference between the $5,000 and the remaining balance Any input would be appreciated. | |
