All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

Posts: 2
Registered: ‎04-27-2018

I accidentally withheld federal income tax on roth can I get the money back

 Please help. I am a college student and I am new to Roth IRA. I did not know that I need to have income in order to contribute. I had $4000 saved up from birthday gift to odd jobs and contributed in Roth IRA vanguard. Later I realized that I need to have taxable income which I did not. So, I did an early withdrawal from  Roth IRA (I did not do the excessive contribution removal, I just didn't know at that time). When I request early withdrawal they asked me if I wanted to either 1) not withhold federal income tax, 2) 10% of federal income tax I wanted to be withheld.  And I was stupid enough to choose federal income tax withheld 10% and state tax as well. It took me awhile to realize that money I contributed to the Roth is already taxed but I was not aware. Now, vanguard only gave me back $3600 and took $400.  how can I get $400 back? I did not have any taxable income last year 2017 and the contribution $4000 was from years of saving..please help.  Gain from the contribution was only $40 dollars

Council Member
Posts: 548
Registered: ‎04-06-2016

Re: I accidentally withheld federal income tax on roth can I get the money back

[ Edited ]

When did you make the contribution and the withdrawal (month and year)? This will affect how the earnings are treated.