Excess contribution Removal
Quick question …
When removing an excess contribution, if the account has lost money since the contribution was made, do you just remove that over contributed amount ?
Thanks –
Gregg Guiol
Quick question …
When removing an excess contribution, if the account has lost money since the contribution was made, do you just remove that over contributed amount ?
Thanks –
Gregg Guiol
Permalink Submitted by Alan - IRA critic on Mon, 2022-09-12 15:18
No, the amount removed will be adjusted for any losses, and the IRA owner will receive less than the contribution. But there will be no earnings subject to tax and penalty. The IRA custodian should automatically perform the calculation of gain or loss and return the adjusted amount.