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Retirement tax questions
An excess Roth IRA contribution made in 2022 is not permitted to be recharacterized in 2024.
The only thing that I can see that could potentially be done in 2024 to correct the excess Roth IRA contribution from 2022 and move the money to a traditional IRA is to take a regular distribution equal to the amount of the excess Roth contribution and use that cash as you would any cash to make a regular traditional IRA contribution independent of the Roth IRA distribution. However, this would not eliminate the excess and 6% penalty for 2023. It would only eliminate the excess and penalty for 2024 and beyond.
‎October 14, 2024
5:42 PM
14,554 Views