Comments on: Is there anything that could be done if I made a Roth IRA contribution which I am not entitled to make? http://www.iraroth.net/2010/03/is-there-anything-that-could-be-done-if-i-made-a-roth-ira-contribution-which-i-am-not-entitled-to-make/ IRA Questions and Answers Thu, 20 Oct 2011 14:36:38 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: stlouiscurt http://www.iraroth.net/2010/03/is-there-anything-that-could-be-done-if-i-made-a-roth-ira-contribution-which-i-am-not-entitled-to-make/comment-page-1/#comment-659 stlouiscurt Fri, 05 Mar 2010 19:48:49 +0000 http://www.iraroth.net/2010/03/what-do-i-need-to-do-if-i-mistakenly-make-a-roth-ira-contribution-which-i-am-not-entitled-to-make/#comment-659 You need to re-characterize the IRA contributions from a Roth IRA to a Traditional post tax IRA. You can do this without any penalties. Talk to whomever handles your Roth IRA and they can help you with the exchange. You need to re-characterize the IRA contributions from a Roth IRA to a Traditional post tax IRA. You can do this without any penalties. Talk to whomever handles your Roth IRA and they can help you with the exchange.

]]> By: Jeffrey http://www.iraroth.net/2010/03/is-there-anything-that-could-be-done-if-i-made-a-roth-ira-contribution-which-i-am-not-entitled-to-make/comment-page-1/#comment-658 Jeffrey Fri, 05 Mar 2010 19:06:44 +0000 http://www.iraroth.net/2010/03/what-do-i-need-to-do-if-i-mistakenly-make-a-roth-ira-contribution-which-i-am-not-entitled-to-make/#comment-658 IRS publication 590 answers this. Basically, you will need to pay a 6% excise tax on the excess amount (see 590 to understand exactly what the "excess amount" is). You should be able to withdraw the excess contribution, as long as you have no earnings (investment gain). If you do have gains, you're required to withdraw them, as well. You can apply the excess to a future year, with some provisions. IRS publication 590 answers this. Basically, you will need to pay a 6% excise tax on the excess amount (see 590 to understand exactly what the “excess amount” is).

You should be able to withdraw the excess contribution, as long as you have no earnings (investment gain). If you do have gains, you’re required to withdraw them, as well.

You can apply the excess to a future year, with some provisions.

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