[konradsa]

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!

[ebaines]

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.