Permalink Submitted by Alan - IRA critic on Sat, 2023-01-28 19:29
They can either be recharacterized as TIRA contributions (usually not deductible), or removed as an excess contribution with adjustment for any gain or loss. If a gain, the amount of gain will be taxable. If a loss, you get back less than the amount you contributed, but you can then make a new TIRA contribution for the full limit if the due date for the tax return of the contribution year has not passed. The above does not apply if the excess contribution was for a year prior to 2022.
Permalink Submitted by Alan - IRA critic on Sat, 2023-01-28 19:29
They can either be recharacterized as TIRA contributions (usually not deductible), or removed as an excess contribution with adjustment for any gain or loss. If a gain, the amount of gain will be taxable. If a loss, you get back less than the amount you contributed, but you can then make a new TIRA contribution for the full limit if the due date for the tax return of the contribution year has not passed. The above does not apply if the excess contribution was for a year prior to 2022.