Excess roth IRA contribution

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manuvns
Posts: 646
Joined: Wed Jan 02, 2008 2:30 pm

Excess roth IRA contribution

Post by manuvns » Mon Apr 16, 2018 9:56 am

While filing my federal tax last night i was told that i made excess $2000 ($5500 instead of $3500)contribution to IRA. I filed my taxes stating that i contributed $3500 . here are couple of question i have

#1 do i have until Oct 15th to withdraw the $2000 to avoid IRS tax penalty ?
#2 What investment should i sell to withdraw the $2000 , what cost basis will be used to calculate capital gains ?

PFInterest
Posts: 2136
Joined: Sun Jan 08, 2017 12:25 pm

Re: Excess roth IRA contribution

Post by PFInterest » Mon Apr 16, 2018 11:57 am

im assuming you mean you are in a phase out range?
would re characterize the rIRA back to a tIRA and then backdoor the entire thing back to a rIRA.

manuvns
Posts: 646
Joined: Wed Jan 02, 2008 2:30 pm

Re: Excess roth IRA contribution

Post by manuvns » Mon Apr 16, 2018 1:48 pm

don't want to do that as it would lead to additional paper work .

Alan S.
Posts: 7715
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Excess roth IRA contribution

Post by Alan S. » Mon Apr 16, 2018 6:49 pm

When did you make the last 2,000 of your Roth contribution, in 2017 or 2018?

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