Calculation of Net Income Attributable for Excess Roth IRA Contribution Removal
Hi, I contributed the full 2022 contribution limit of $6000 to my Roth IRA on January 3, 2022. Now that I'm doing taxes for 2022, my tax filing software informed me that my contribution is limited to *earned* income, not all income. I only had $900 in wages, the rest was from dividends, capital gains, and interest. So, I think I need to pull $5,100 out of my Roth IRA before the tax deadline. I've filed an extension to give myself time to figure this all out. The form from my broker for this withdrawal has a line item adjustment for Net Income Attributable (NIA) and says to calculate that amount using IRA Pub. 590-A Worksheet 1-3. Line 5 from that worksheet is -0.31 since my Roth IRA stock portfolio value has fallen 31% since the start of 2022. So, does that mean I need to withdraw only $3,522 ($5,100 times 69%)? Or do I need to withdraw the full amount of $5,100?
