Get your taxes done using TurboTax

Each year is judged on its own facts.  If you contributed an excess this year, based on your 2024 filing situation, you can either pay the penalty, remove the excess, or recharacterize it as a non-deductible contribution to a traditional IRA.  Each has pros and cons.

 

If you remain eligible to contribute to a Roth in 2025, you can "use up" the excess by applying it to your 2025 limit.  For example, suppose you contributed $3000 in 2024 and it is all excess this year.  And suppose in 2025 you will be eligible for the full $7000.  If you leave the $3000 in the Roth and pay the penalty this year, then the $3000 will be considered as part of your 2025 limit, and you can contribute up to $4000 more, and that will eliminate the penalty in the future.