DanaB27
Expert Alumni

Retirement tax questions

If you are in the phaseout range it is best to withdraw a bit more than the excess contribution shown to avoid this endless circle.

 

Another option would be pay the 6% penalty on the new excess contribution on your 2024 return and then either apply the excess as a contribution in 2025 (if you are allowed to make Roth IRA contributions) or remove the excess as a regular distribution without earnings after the extended due date  (between October 16th and December 31, 2025).

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