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I contributed $3500. to my Roth IRA in March 2003 for the 2003 tax year. In September 2003 I was married and my wife and I are filing taxes separately making my IRA contribution no longer allowable.

I have submitted a "removal of excees IRA payment" form to my IRA custodian. They will return the original contribution amount plus the earnings on that contribution. As I understand it, I will pay taxes on the earnings only.

My question concerns how and when to report these earnings. My IRA custodian says they will send a 1099-R form in January of 2005. Does this mean I don't pay taxes on my 2003 contribution earnings until tax year 2004? Or do I report the earnings (as reported to me by my IRA custodian) on my 1040 form for 2003?

Is there anybody out there familiar with this procedure that can clear it up for me (and anyone else in the same boat)? Thank you in advance.

Aleph (Mark)
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