You cannot recharacterize a contribution after the due date. You will have to pay the 6% penalty each year on Form 5329 since you haven't removed the excess contributions. You also will have to pay the 6% penalty on your 2024 tax return:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- On the "Do you have any Excess Roth Contributions" answer "Yes"
- On the "Enter Excess Contributions" screen enter the total excess contribution
To remove the excess contributions and avoid the 6% penalty for 2025 request a regular distribution without earnings or losses before December 31, 2025.
On your 2025 tax return you will report the 2025 Form 1099-R and this will remove the excess contribution:
- Click on "Search" on the top and type “1099-R”
- Click on “Jump to 1099-R” and enter all your 1099-Rs
- Click "Continue" on the "Review your 1099-R info" screen after you entered all you Form 1099-R
- Answer "Owned Any Roth IRA for Five Years?" screen
- Continue through the questions and make sure you enter the net contributions prior to 2024 on the "Enter Prior Year Roth IRA Contributions" screen (include the excess contributions).
@Eyeman2
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