MayaD
Employee Tax Expert

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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