Hi,
I made a contribution to a Roth IRA on 9/4/23 for the amount of $6500, later on 9/12/23 I transferred $4000 from my Roth IRA account to my regular investment account by mistake, and did not realize it until I got 1099-R with code distribution code J. I am neither 59 (I am 23) nor 5 year rules apply. I also received 5498 forms showing $6500 contribution for 2023.
I called Fidelity and they said Mistakes done so you have consequences so consult your Tax advisor, I am not rich, by any means I have a tax adviser.
What are my alternatives so I don't have to pay tax or penalty due to this mistake?
Should I open another Roth IRA account to deposit $4000 for year 2023? Since fidelity does not allow to put money back in a Roth IRA as a contribution max out.
Any other ideas?
Thanks for this help.
I made a contribution to a Roth IRA on 9/4/23 for the amount of $6500, later on 9/12/23 I transferred $4000 from my Roth IRA account to my regular investment account by mistake, and did not realize it until I got 1099-R with code distribution code J. I am neither 59 (I am 23) nor 5 year rules apply. I also received 5498 forms showing $6500 contribution for 2023.
I called Fidelity and they said Mistakes done so you have consequences so consult your Tax advisor, I am not rich, by any means I have a tax adviser.
What are my alternatives so I don't have to pay tax or penalty due to this mistake?
Should I open another Roth IRA account to deposit $4000 for year 2023? Since fidelity does not allow to put money back in a Roth IRA as a contribution max out.
Any other ideas?
Thanks for this help.
Statistics: Posted by uspeed — Fri Jan 26, 2024 6:15 pm — Replies 2 — Views 206