On March 1, 2000 my roth IRA was worth $5000(1998 contribution +1999 contribution + gains),I made a contribution of $1800 to roth IRA onthat day for the year 2000. Then I discoverd that I was ineligible to make ROTH contribution in year 2000 and so I decided to request a distribution of $1800 + earnings. Lets say if I request the distribution on march 01,2001 and the IRA is worth $2500. The ROTH IRA trustee needs to transfer $1800 plus allocable net income.Calculating Net income using New MethodThe adjusted opening balance is 6800 [5000+1800}and adjusted closing balance is 2500 Thus the net income allocable to $1800 is -1138 [1800*[2500-6800]/6800]My question is if Roth IRA Trustee transfers$662. What happens to 1138. Can I write ascapital loss? How are capital losses treatedwith old method ?My Second question is How do I calculate the Adjusted opening Balanceand Adjusted Closing Balance. Lets say I wantto remove the excess contribution of $1800 plusearnings from my roth IRA before the April 15tax filing dead line. To calculate the closingbalance Can I take the portfolio value as ofDec 2000 or Jan 2001 or Feb 2001 or Mar 2001.The reason why I ask this is no matterwhen you calculate the closing balance therewill be fluctuation between the day when I sign theform and the day when the form will reach thetrustee
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