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Mr. Phil Marti wrote:

>> If you correct an excess contribution, it's as if the contribution were never made.


>> I don't know where you got the idea that you'd report anything about an IRA on Schedule D. Income from an [IRA] is ordinary income reported on line 15 of the 1040. Losses in IRAs are not deductible unless you liquidate your entire IRA for less than the total of your nondeductible contributions. In such a case you have a Schedule A miscellaneous itemized deduction.

My question: (and I'm sorry for being slow; I hope I'm not wearing your patience)

If "it's as if the contribution were never made," then how can I have income/loss from an IRA? I didn't have one, right? I would think the income/loss is as if the money was invested in a non-IRA. What am I missing here?

Thank you very much for your help.
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