Hello,
I have a somewhat nuanced situation with several questions.
2022 tax year: In 2022 I over-contributed to my Roth IRA in Schwab, realized this in early 2023 when filing taxes, and withdrew the excess into a Schwab brokerage account with an in-kind transfer of the mutual fund it was invested in. I elected for Schwab to calculate the gain/loss, and because the market was down/flat during the year the distribution was slightly less than I requested (i.e., there was a loss). I then received a 2023 1099-R from Schwab in Jan. '24 noting this withdrawal with codes PJ but $0 taxable income, because of the loss. This was all as expected.
Question/confirmation 1: I do not need to report anything else on my 2023 tax filings, nor do any 2022 amendments, correct?
2023 tax year: I forgot to turn off the auto-transfer of funds into my Roth IRA at the beginning of the year, and ended up contributing $230 in January 2023. My income was once again above the limit, and I went through the same process as in 2022. However, because the market was up this year the removal of excess into the brokerage account amounted to $278.97, or more precisely 3.349 shares of SWTSX at $83.30 were journaled out of my Roth IRA and into the brokerage account.
Questions:
- 2.0: Should I report this $48.97 gain as income on my 2023 taxes that I will file before April 15 this year? From what I’ve read the answer to this is yes, and I’d rather do it now than file an amended 2023 return next year when I officially get the 1099-R
- 2.1: Should I start to enter a 1099-R in TurboTax and select “I need to file a substitute 1099-R”, which it then looks like will actually file a Form 4852 instead? I’ve seen people in this situation say they’ve just filed 1099-R’s that they haven’t received but this seems like it may be the more correct way
- 2.2: Conceptually, should the cost basis of the 3.349 shares of SWTSX have a cost basis of when they were bought in Jan. ’23 or when they were journaled (Schwab’s term in the txn history) in Feb. ’24? I feel like it should be the latter because I will already be taxed on the gain, but Schwab shows the lot details of this 3.349 shares at $236.49 and an outstanding ~$46 capital gain
Happy to provide any follow-up details, appreciate any help in advance.
I have a somewhat nuanced situation with several questions.
2022 tax year: In 2022 I over-contributed to my Roth IRA in Schwab, realized this in early 2023 when filing taxes, and withdrew the excess into a Schwab brokerage account with an in-kind transfer of the mutual fund it was invested in. I elected for Schwab to calculate the gain/loss, and because the market was down/flat during the year the distribution was slightly less than I requested (i.e., there was a loss). I then received a 2023 1099-R from Schwab in Jan. '24 noting this withdrawal with codes PJ but $0 taxable income, because of the loss. This was all as expected.
Question/confirmation 1: I do not need to report anything else on my 2023 tax filings, nor do any 2022 amendments, correct?
2023 tax year: I forgot to turn off the auto-transfer of funds into my Roth IRA at the beginning of the year, and ended up contributing $230 in January 2023. My income was once again above the limit, and I went through the same process as in 2022. However, because the market was up this year the removal of excess into the brokerage account amounted to $278.97, or more precisely 3.349 shares of SWTSX at $83.30 were journaled out of my Roth IRA and into the brokerage account.
Questions:
- 2.0: Should I report this $48.97 gain as income on my 2023 taxes that I will file before April 15 this year? From what I’ve read the answer to this is yes, and I’d rather do it now than file an amended 2023 return next year when I officially get the 1099-R
- 2.1: Should I start to enter a 1099-R in TurboTax and select “I need to file a substitute 1099-R”, which it then looks like will actually file a Form 4852 instead? I’ve seen people in this situation say they’ve just filed 1099-R’s that they haven’t received but this seems like it may be the more correct way
- 2.2: Conceptually, should the cost basis of the 3.349 shares of SWTSX have a cost basis of when they were bought in Jan. ’23 or when they were journaled (Schwab’s term in the txn history) in Feb. ’24? I feel like it should be the latter because I will already be taxed on the gain, but Schwab shows the lot details of this 3.349 shares at $236.49 and an outstanding ~$46 capital gain
Happy to provide any follow-up details, appreciate any help in advance.
Statistics: Posted by matech8 — Thu Feb 08, 2024 9:06 pm — Replies 0 — Views 71