What is a withdrawal of 2025 Roth IRA contributions?
If you made Roth IRA contributions in 2025, you can withdraw them on or before the due date of your 2025 return (or, if you filed an extension, by the extended due date) and treat them as though they'd never been contributed, usually for the purpose of avoiding an excess contribution penalty. This treatment only applies if any earnings on the withdrawn contributions are also withdrawn.
Any withdrawn earnings are considered taxable income and should not be treated as part of your contribution withdrawal. These earnings are reported as taxable IRA distribution income, not as interest, and will appear on Form 1099-R. They should be reported on your tax return for the year in which the excess contribution was made.
Any withdrawn earnings are considered taxable income and should not be treated as part of your contribution withdrawal. These earnings are reported as taxable IRA distribution income, not as interest, and will appear on Form 1099-R. They should be reported on your tax return for the year in which the excess contribution was made.
