In October 2006 I made a Roth IRA contribution of $4k. By the end of the year I realized that I was not eligible to contribute to my Roth IRA (above the AGI limit) so earlier this year I had to take a prior year excess distribution which refunded me the $4k that I put in plus $1,300 of earnings which I received in March. The $4k contribution and refund should be a wash since a Roth IRA is non-deductible so there's no issue there. The question I have is regarding the $1,300 of earnings. It seems to me however that I should be reporting the $1,300 of cap gains/dividends for 2006 since that is when it was earned but I have not received a 1099 for it and my broker (Scottrade) told me that I would be receiving a 1099 for it next year for 2007. If I report it now (for 2006) but get a
1099 for it next year, it will seem that I need to report that same $1,300 for 2007 thus being double taxed. Maybe I shouldn't include that income for 2006 and just report it next year for 2007 so that it matches the 1099? That just seems wrong though since it was earned in '06. Any ideas on how I handle this. Maybe there's a form I will need to complete next year to show that I already reported that income in a prior year?- posted
17 years ago
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