Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next
Author: danchat Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 122469  
Subject: Re: Excess Roth with Capital Loss Date: 3/28/2001 11:20 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
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.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Kiddie Card Board
Should kids have their own credit card?
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:

Apple Watch and the Rational Mind
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.