Timeline for Is a 401k withdrawal considered "earned income?"
Current License: CC BY-SA 4.0
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| May 3, 2020 at 15:19 | vote | accept | dkv | ||
| May 3, 2020 at 15:00 | comment | added | dkv | Thanks for the answer. I did mean 2018, my actual situation is more complicated: I have already contributed $5500 to my Roth IRA in 2018, but am now realizing that this is more than the maximum I am allowed to contribute (which you're telling me is $3000). So, I'm trying to figure out (1) how much of my contribution is "excess" and therefore gets 6% taxed for last year, and (2) how much I need to withdraw to avoid paying the 6% tax again this year. | |
| May 3, 2020 at 4:45 | history | edited | Morrison Chang | CC BY-SA 4.0 |
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| May 3, 2020 at 4:38 | comment | added | Morrison Chang | @dave_thompson_085 You're right. making correction, thanks. | |
| May 3, 2020 at 4:22 | comment | added | dave_thompson_085 | You link to the rules for 'earned income' for EITC. IRA contributions use 'compensation' which is slightly different -- IRA 'compensation' does include non-TCJA alimony while EITC does not, and for EITC you can choose whether to include Medicaid waiver payments. But both IRA and EITC exclude the 401k distribution in this Q. | |
| May 3, 2020 at 0:31 | history | edited | Morrison Chang | CC BY-SA 4.0 |
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| May 3, 2020 at 0:24 | history | answered | Morrison Chang | CC BY-SA 4.0 |