The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Non-deductible IRA||Date: 3/20/2013 3:22 PM|
|Author: TMFPMarti||Number: 118092 of 121189|
I contributed to 2012 IRA (in Jan 2013) and after finishing the taxes realized I cannot deduct the amount from my taxes due to high AGI. I withdrew the money from my IRA.What forms do I have to file with IRS?
Did you address earnings or just withdraw the contribution amount? I suspect the latter, in which case you have a 2012 contribution and a 2013 withdrawal. Whether you like or not or intended to or not, you made a nondeductible 2012 contribution, which you document in Part I of Form 8606 filed with your 2012 return.
Your custodian will send you a 2013 1099-R documenting the withdrawal. You will use Part I of your 2013 Form 8606 to compute the taxable portion, if any, of that withdrawal. If you're under 59 1/2 the taxable portion will also be subject to the 10% penalty.
Piling on Bill, next time try asking before you act, not after.
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P.S. If by chance you do not have any other traditional IRA money, including SEPs, SIMPLEs or rollovers from prior employer plans, let us know. You can do the back door Roth contribution Bill mentioned with little, if any, effect on your taxes.
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