@sisterpwincess wrote:
1 & 2) I've found out that all $60 of my contributions in 2023 were applied to 2023, so I (thankfully) correctly filed with $60 excess.
3, 4, & 5) Thank you! Noted.
6) You "use up" the excess by applying the 2023 excess as a 2024 contribution.
Forgive me if this is an irrelevant question: how do I go about applying the $60 excess as a 2024 contribution? For our 2024 tax return, I see that you say it'll be done with Form 5329. But is this something I have to separately take care of on Fidelity Investments? Or is there nothing to do on there after we've filed and resolved the excess?
Our MAGI is < $230k ; Husband maxed out his 2024 Roth, and I haven't contributed to mine since 2023, so I definitely have room for my excess $60 in my $7k Roth IRA contribution limits lol.
It's part of form 5329. You are asked for your excess carryover, and your contributions for 2024. As long as your excess plus your 2024 contributions are less than your 2024 limit, the excess is applied to 2024. It should all happen automatically. The broker has nothing to do with it, because the broker doesn't know your income tax details, so they don't know or care what is excess and what is allowed, that's just between you and the IRS.
And even if you did not work in 2024, you can use the spousal IRA rules to contribute up to $7000 (or $6940 in your case) to your Roth IRA, if you want to start saving again. 2024 contributions can be made until April 15, 2025, you just have to tell the plan that you are making a 2024 contribution.
