Hi,

I got the following issue: Last year 2010 I put about $3500 in my Roth IRA, but realized then back in Feb 2011 that I exceeded the income limit for contributions by far. Now I sent Vanguard a form to remove all the excess and withhold tax on the gains, which they did.

However, I did not get any form now about this from Vanguard, which makes me wonder which tax year I have to include the transaction and gains on, the 2010 or next year's 2011 return? And if this year, what form do I need to file for the gains I had removed? I called Vanguard about it, they told me I won't receive a form 1099 anymore this year, and they also could not answer me whether the form I will receive next year will be for the 2010 or 2011 tax year.

Thank you!

Since they distriubuted the excess and withheld taxes in Feb 2011, it counts as income to you in 2011. Hence in January 2012 you will receive a 1099 from Vanguard that will include this for filing with your 2011 taxes.