Re-contributing to Roth IRA after taking out current year contributions

Submitted by Jim Bend on Sat, 2022-10-01 18:57

Can one re-contribute to their Roth IRA under the following circumstances?

1. Contributed $6,000 in January 2022 for 2022 contributions.
2. Pulled out $8,000 on May 2022. (Full $8,000 is considered contributions – $6k from 2022 and $2k from 2021)

Even though the 60-day rollover is no longer applicable can one recontribute the $6,000 of contributions for 2022?

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Permalink Submitted by Alan - IRA critic on Sat, 2022-10-01 21:02

Short answer – No. In order to re contribute for 2022, you must have requested a specific return of your 2022 Roth contribution and the custodian would have calculated any gain or loss on that contribution and returned the adjusted amount to you. That would have opened up your contribution space for 2022 to make another contribution. However, it sounds like you just requested an ordinary distribution of 8000 and no gain or loss calculation was done, the 6000 would not have erased the specific year contributions you made earlier, and you would not be able to make another contribution.
Your 8000 distribution will be reported on a 1099R and the code in Box 7 will not indicate a corrective distribution. Your must report the 8000 on line 19 of Form 8606, and because the distribution will come from your total regular Roth IRA basis (which you must keep track of) and entered on line 22 of Form 8606, it will be non taxable.