Taxpayer (29 years old) made a contribution to a Roth IRA in 2023. In 2024 he wants to withdraw his 2023 contribution (not earnings) without tax or penalty.
My understanding is that he can withdraw his current year contribution without tax or penalty, but for a prior year it would be subject to the early withdrawal penalty.
Unfortunately I can't easily figure out whether I'm right or not.
Can you help? Thanks.
According to Stuart O. Bronstein snipped-for-privacy@lexregia.com:
In the section in Pub 590-A on excess contributions, it appears to say that you can reverse contributions until the tax filing deadline, which for 2023 is this coming April and maybe even October if he gets an extension. He also has to withdraw any earnings on the de-contributed amount and, I assume, declare them as taxable income.
See pages 42-43 of Pub 590-A.
John Levine wrote on 3/8/24 3:31 PM:
Can't he just do a normal withdrawal of the contributions ?
-- Shankar Prasad
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