Gain on excess Roth contribution -- lived in 2 states

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mister_sparkle
Posts: 287
Joined: Wed Dec 11, 2013 5:58 pm
Location: North Carolina

Gain on excess Roth contribution -- lived in 2 states

Post by mister_sparkle » Mon Jan 13, 2020 1:22 pm

I am trying to determine how I should divide the taxable gain portion of the return of excess Roth IRA contributions I made in 2019.

Contributed $3750 on 1/2/19 and $3250 on 2/28/19, totalling $7000.

Moved from IL to NC at the end of September.

Removed the $7000 contribution + a gain of $810 on 11/25.

Should I divide the $810 between IL and NC using pro-rata # of days I lived in each state? Or just ballpark it 3/4 to IL and 1/4 to NC?

Alan S.
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Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Gain on excess Roth contribution -- lived in 2 states

Post by Alan S. » Mon Jan 13, 2020 2:16 pm

mister_sparkle wrote:
Mon Jan 13, 2020 1:22 pm
I am trying to determine how I should divide the taxable gain portion of the return of excess Roth IRA contributions I made in 2019.

Contributed $3750 on 1/2/19 and $3250 on 2/28/19, totalling $7000.

Moved from IL to NC at the end of September.

Removed the $7000 contribution + a gain of $810 on 11/25.

Should I divide the $810 between IL and NC using pro-rata # of days I lived in each state? Or just ballpark it 3/4 to IL and 1/4 to NC?
You didn't receive the gains until 11/25, so that 810 will all be reportable on your NC return unless there is some question as to when you established domicile in NC.

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