whodidntante wrote: ↑
Sun Apr 14, 2019 5:51 am
Filing an extension is really easy. There is no reason to avoid that if you need more time.
Can the 2018 overcontribution be applied to 2019?
Did the overcontribution occur due to income based phase out? If so, you should do a backdoor Roth going forward, if you can roll the pretax amounts into a 401k.
Katietsu wrote: ↑
Sun Apr 14, 2019 9:30 am
File the extension. This will give you until October 15 to remove the excess contribution.
Yes, Vanguard will calculate the earning associated earnings.
Do you know if there is a gain or loss? The possible difficulty here is that if you have a gain, that gain is added to your 2018 taxable income. If your excess contribution is because of too high of an income, the extra earnings will make more of your contribution fall into the excess category. Then you will need to withdraw more excess contributions.
Bacchus01 wrote: ↑
Sun Apr 14, 2019 6:26 am
You can’t just sell the funds and be okay. You have to reverse the contribution. That takes a form for Vanguard and you have to mail it in. Yeah, the old snail mail.
Ask me how I know.
You’ll need to file and extension.
Thanks all. I will
have filed the extension. H&R block D/Led S/W wanted $20 to file just the extension! SO I ended getting done via TurboTax online for free.
Calculating associated earnings, gain or Loss:
I do not know if it is a gain or loss but am very happy that Vanguard will calculate it for me.
Yes, I think, the over contribution is due to income phase out. Gross, combined we make ~ $180 - $190, which is why I think we are each only $40 over. We each put in $5,500 according to vanguard.
Although now for the life of me, I can't get H&R block s/w to bring me back the warning where it states that we both over contributed.
Looking at our numbers, our mAGI is the same as our AGI, which is just below the $189,000, at $188,103. We both also have 401k at work and contribute the maximum ($18,500) to it as well. I also do a mega backdoor roth ira with an additional $20k or so.
- Unless our mAGI is not the same as our AGI. Does it seems like we are over contributed?