DanielV01
Expert Alumni

Retirement tax questions

Correct.  The growth is taxable.  But it's kind of a shame that you caught this when you did and just pulled the money out.  There actually is a way for you to contribute to a Roth when you are above the threshold to make a direct contribution.  It's termed a "back-door" Roth:  you first contribute to a nondeductible Traditional IRA and immediately convert the contribution to a Roth IRA.  While there's extra reporting involved, this does get around the contribution limit.  

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