Reporting excess ROTH earnings

[Guest sammy2]

Before fiiling my taxes I discocovered I'm inelgible for a 2003 ROTH contribution. I've requested the excess cointribution and earnings be reoved. Where do I report the approx. $750 earnings from that excess contribution on my 2003 tax return? The gain resulted from an increase in value of the mutual fund shares. Would I simply report this as if it had nothing to do with an IRA; or is there some special method or form? Because this is being done just before filing the corrected contribution forms etc won't be submitted until after the tax filing date. Thanks

[Guest planman]

I know some of the answers but not all. Your excess contributions are return of after-tax dollars and not taxable. Your earnings are a taxable IRA distribution and reported as such. The earnings are also subject to the 10% early withdrawal penalty unless you are over age 59 1/2. If you file for an extension, you have until that date to remove the excess contributions and earnings. YOur IRA custodian will report this on a 2004 1099R (received in early 2005) indicating taxable for prior year. So you report it on your 2003 return but you won't really having any form to support it.

[Appleby]

See the instructions for line 15 of IRS Form 1040 http://www.irs.gov/pub/irs-pdf/i1040.pdf