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Withdrawl of excess contribution

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    #1

    Withdrawl of excess contribution

    TAXPAYER MAKES A 2013 TRADITIONAL IRA CONTRIBUTION IN 2013. IN MARCH OF 2014, T/P WITHDRAWS CONTRIBUTION PLUS EARNINGS. EARLY IN 2015, T/P RECEIVES A 2014 1099-R PERTAINING TO THE WITHDRAWL. THE 1099-R INCLUDES A TAXABLE AMOUNT IN BOX 2a REFLECTING EARNINGS ON WITHDRAWL, AND HAS CODE 1P IN BOX 7.

    SHOULD THE EARNINGS FROM BOX 2a BE INCLUDED ON THE 2014 TAX RETURN, OR DOES THE 2013 RETURN NEED TO BE AMENDED TO INCLUDE THOSE EARNINGS?
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    #2
    The 2013 return needs to be amended. The "p" in box 7 states "excess contributions plus earnings/excess deferrals taxable in 2013.

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      #3
      Unless there was an actual deduction on the 2013 return for the excess, no need to amend, just report the earnings on the 2014 return.

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