Reporting Excess Roth IRA Contribution on 1040

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Subject Author Date Reporting Excess Roth IRA Contribution on 1040 gindie 01-23-2009  Re: Reporting Excess Roth IRA Contribution on 1040 Alan 01-23-2009  Re: Reporting Excess Roth IRA Contribution on 1040 Phil Marti 01-23-2009  Re: Reporting Excess Roth IRA Contribution on 1040 Mark Bole 01-24-2009  Re: Reporting Excess Roth IRA Contribution on 1040 gindie 01-25-2009
Posted by gindie on January 23, 2009, 9:01 pm Please log in for more thread options I will be withdrawing excess 2008 Roth IRA contributions (not a total liquidation). These contributions resulted in a loss. Where, if anywhere, do I account for this transaction on my 1040? Also, I understand that I won't get a 1099-R for this until next year, what do I do with that when I get it? -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Alan on January 23, 2009, 10:05 pm Please log in for more thread options gindie wrote: > I will be withdrawing excess 2008 Roth IRA contributions (not a total > liquidation). These contributions resulted in a loss. Where, if > anywhere, do I account for this transaction on my 1040? Also, I > understand that I won't get a 1099-R for this until next year, what do > I do with that when I get it? > See page 4 of the Form 8606 instructions on how you will report the distribution on your 2009 tax return. You don't have a reportable loss as long as you have any Roth account still in existence. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Phil Marti on January 23, 2009, 11:53 pm Please log in for more thread options "gindie" wrote: >I will be withdrawing excess 2008 Roth IRA contributions (not a total > liquidation). These contributions resulted in a loss. Where, if > anywhere, do I account for this transaction on my 1040? You report the distribution on line 15 of your 2008 1040, not your 2009 return as the eariler response suggested. Line 15a is the amount returned, line 15b is zero, and you attach an explanation that this is a return of an excess 2008 contribution minus negative earnings. You'll get a 1099-R a year from now showing the distribution. It will be coded to show that it's something that should have been reported on your 2008 return. You do nothing with it on your 2009 return. See page 4 of the instructions for Form 8606. -- Phil Marti Clarksburg, MD -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Mark Bole on January 24, 2009, 8:58 pm Please log in for more thread options Phil Marti wrote: > "gindie" wrote: > >> I will be withdrawing excess 2008 Roth IRA contributions (not a total >> liquidation). These contributions resulted in a loss. Where, if >> anywhere, do I account for this transaction on my 1040? > > You report the distribution on line 15 of your 2008 1040, not your 2009 > return as the eariler response suggested. Line 15a is the amount returned, > line 15b is zero, and you attach an explanation that this is a return of an > excess 2008 contribution minus negative earnings. > > You'll get a 1099-R a year from now showing the distribution. It will be > coded to show that it's something that should have been reported on your > 2008 return. You do nothing with it on your 2009 return. > > See page 4 of the instructions for Form 8606. > Not sure why (or if) you think the other thread "Recharacterization of stock transfer to Roth from Trad IRA" is in essence any different from this...? In the former case you recommend trying to get the custodian to tweak the 1099-R, in this case you (correctly) state to attach an explanation. To the OP: just to confirm, by "excess", you mean contributions that are not allowed due to your AGI being too high for your filing status? -Mark Bole -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by gindie on January 25, 2009, 9:06 am Please log in for more thread options > > To the OP:  just to confirm, by "excess", you mean contributions that > are not allowed due to your AGI being too high for your filing status? > Yes. Significant unexpected distribution from Traditional IRA caused us to blow right past the Roth IRA limits. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Paying Penalty for Excess Roth IRA Contribution April 12, 2006, 11:09 pm Question regarding penalty associated with excess Roth IRA contribution April 14, 2006, 3:45 am 401(K) Excess Contribution January 26, 2007, 11:52 pm excess 401(k) contribution April 3, 2007, 6:46 pm excess 401(k) contribution & W-2 April 16, 2007, 12:09 am Excess IRA contribution January 28, 2008, 8:55 pm excess contribution to 457 February 1, 2008, 11:25 am Refund of "excess" 401(k) contribution due to HCE tag January 25, 2007, 2:43 am SIMPLE IRA - Possible excess contribution? 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