Withdrawal of 2013 xxcess IRA contribution for 2012 tax year

Submitted by dan everton on Mon, 2013-10-14 19:08

I searched this forum for my situation but since I don’t think it has been answered specifically —

I made Roth IRA contributions in April 2013 for the 2012 tax year just before timely filing my 2012 return. Then, I realized I did not qualify to contribute. I know I have a 6 month extension (10/15/2013) to request withdrawal of contributions + earnings, so I requested my IRA custodian to withdraw this amount. I have not received the withdrawal check yet, so I don’t know the exact amount of the earnings. The IRA custodian stated that in January 2014, I will receive a 1099 for tax year 2013 because the contribution was made in 2013, and I will be taxed on these earnings in 2013.

Does this mean I do not need to file a 1040X or 5239 for 2012 by tomorrow 10/15/2013? And just wait to add the 1099 with my 2013 return?

Thanks!



Submitted by Alan - IRA critic on Mon, 2013-10-14 19:30

Yes. You don’t report Roth contributions on your tax return unless you file Form 8880 for the Savers Credit. As such there is nothing to amend if no Form 8880. The earnings will be taxable in 2013 as the custodian indicated because the contribution was actually made in 2013.



Submitted by dan everton on Mon, 2013-10-14 20:56

thanks so much for your help!! 



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