Retirement tax questions

In that case, you over contributed to the Roth IRA which will result in a 6% penalty if you keep it there. Yo have two options, you can either keep the penalty and apply the excess contribution till next year 

 

OR; remove the excess contribution after the tax deadline by requesting a regular distribution to remove the excess contribution between October 17 and December 31, 2023

 

If you would rather avoid the penalty, then you can either withdraw the excess contributions plus earnings.

 

OR; Recharacterize the Roth IRA contribution as a traditional IRA contribution.

 

For complete detail on how to handle this. See HERE  

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"