Sounds like it will be easier to complete the removal and report the gains before filing (which thankfully I haven't done yet), so I'll try for that.
But I'm still unsure how to calculate my "earnings". Do I just subtract the current value of the account from the value of the account on the day I made the contribution? That seems kinda inaccurate though, considering there are other funds/etfs in the Roth that have contributed to todays current value.
I'll call my brokerage tomorrow, but I have a feeling they are just gonna tell me "Sorry sir, we can't give any tax advice".
Gains will be prorated. Say you had 13,000 in the account on day 0. You added 6500. So balance is 19,500.
On day X you withdraw the 6500 added in error but before this the balance was 22,500. So there was a total gain of 3000. 6500/19500=1/3 so 1000 of the gain will be added to the 6500 so broker will return 7500 to you and 1000 will be taxable.
Statistics: Posted by LotsaGray — Mon Apr 01, 2024 1:08 am — Replies 6 — Views 475