Lori Friedman Posted April 27, 2017 Share Posted April 27, 2017 Taxpayer made a $5,500 IRA contribution for 2016 but withdrew the funds, along with the related investment earnings, before the Form 1040 due date (extended). So far, so good. The $5,500 has no tax consequences, but the earnings are taxable in 2016. I can't find any guidance about the mechanics. IRS Publication 590-A has some nice language about the general tax treatment, but it doesn't say where/how to report the numbers. -- I'm guessing the earnings get reported on Form 1040, Line 15b as a taxable IRA distribution? -- Taxpayer is under age 59-1/2. Are the earnings subject to the 10% penalty for an early withdrawal? (We're talking about 10% of $30, so this isn't material whether "yes" or "no." I'd like to get things right, though.) -- I don't believe the IRA custodian will issue a 2016 Form 1099-R? The money was withdrawn during 2017; as far as the custodian's concerned, isn't this a 2017 distribution? Lori Friedman Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now