DanaB27
Expert Alumni

Get your taxes done using TurboTax

You could request the return of excess contribution plus earning for the 2024 contribution in amount of the new excess contribution since you contributed already the full amount for 2024. Then you would be able to apply this new excess from 2023 to 2024. In this case you would only pay the 6% penalty on your 2023 return.

 

On your 2024 return:

 

  1. Click on "Search" on the top right and type “IRA contributions”
  2. Click on “Jump to IRA contributions"
  3. Select “Roth IRA
  4. Enter the Roth IRA contribution for 2024 minus the amount withdrawn to be able to apply the excess from 2023.
  5. On the "Do you have any Excess Roth Contributions" answer "Yes"
  6. On the "Enter Excess Contributions" screen enter the total excess contribution from 2023
  7. On the "How Much Excess to 2024?" screen enter the amount applied as 2024 contribution.

 

 

If you do not want to withdraw part of the 2024 contribution plus earnings then you can pay the 6% penalty on the 2024 return for the new 2023 excess. You then will take a regular distribution in amount of the new 2023 excess contribution in 2025. This distribution will be reported on your 2025 return and then resolve the new 2023 excess contribution.

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