Over the limit?

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Over the limit?

Post by whigrean » Tue Feb 13, 2018 1:47 pm

In 2017 I rolled over a $3200 of roth 403b contributions to a Schwab Roth IRA account. In 2017 I also contributed $5500 to my "contributory" IRA account through Schwab. Also, my wife had a similar situation with about the same amount of money rolled over from a roth 401k. DO I need to remove the excess $$ above $5500 to avoid excess contribution taxes?

Thanks for your help!

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Re: Over the limit?

Post by Pajamas » Tue Feb 13, 2018 1:51 pm

Rollovers don't count toward contribution limits because they were already counted as contributions. Think of rollovers as more of a lateral transfer between different accounts, even if they are not the same type of accounts, as they are not new money going into retirement accounts for the first time, which is what a contribution is.

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