Permalink Submitted by Alan Spross on Fri, 2011-07-22 20:44
Yes, if a contribution is made and then withdrawn as an excess or return of specific contribution with allocated net income, the contribution can be re-contirbuted at a later date. But the 1099R for the returned contribution must be coded to show it as such and not just an early or normal distribution.
The IRS will look at the total contributions for all the 5498 forms they receive for the owner’s IRA accounts and subtract the 1099R return of contributions to see if the remaining total was within allowed limits.
Permalink Submitted by Alan Spross on Fri, 2011-07-22 20:44
Yes, if a contribution is made and then withdrawn as an excess or return of specific contribution with allocated net income, the contribution can be re-contirbuted at a later date. But the 1099R for the returned contribution must be coded to show it as such and not just an early or normal distribution.
The IRS will look at the total contributions for all the 5498 forms they receive for the owner’s IRA accounts and subtract the 1099R return of contributions to see if the remaining total was within allowed limits.