Reporting Excess Roth IRA Contribution on 1040

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?

Reply to
gindie
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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.

Reply to
Alan

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.

Reply to
Phil Marti

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

Reply to
Mark Bole

Yes. Significant unexpected distribution from Traditional IRA caused us to blow right past the Roth IRA limits.

Reply to
gindie

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