Return of Excess Calculation

Hello,

I was wondering if I could get your stance on what information is needed when calculating a return of excess amount. Would management fees be something that should be included in the “outflows” when calculating if there was any earnings or losses on a excess contribution?

Thank you.



  • The custodian will generally calculate the earnings or loss according to the IRS formula. There are no separate deductions. The adjusted opening and closing balances need to be determined. Some custodians may not perform the calculation and will ask the taxpayer to provide the figure to them. Either way, the same formula must be used.
  • Net Income Attributable (NIA): What It Is, How It Works, Examples (investopedia.com)

Add new comment

Log in or register to post comments