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Retirement tax questions
To avoid paying the 6% penalty you can:
- Withdraw the excess contribution plus earnings: Keep in mind that the earnings are included in your taxable income for the year the excess contribution was made, so you’ll still receive a 1099-R to report these earnings on your tax return
- Recharacterize the Roth IRA contribution as a traditional IRA contribution: Contact your plan administrator for guidance on this process.
For more information please check :
What happens if I made an excess Roth IRA contribution
irs.gov
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January 9, 2023
12:22 PM
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