l141
Level 2

Deductions & credits

Awesome, thank you so much! This was extremely helpful.

 

I do have one question though, with regards to fixing the situation. It sounds like with option A we pay income tax on the $1825 excess contribution and with option B we pay income tax and the 6% penalty on the $1825 excess? I was thinking with option B we would only pay the 6% penalty since the excess could be applied to this year's contribution.

 

Thanks!