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Retirement tax questions
That would be a problem.
Your *total* 2018 IRA contributions (Traditional plus Roth) cannot exceed $5,500 ($6,500 if over age 50).
If your total contributions were $8,000, then you have an excess of $2,500 if under age 50, that must be removed before April 15, 2019 to avoid a penalty. That should be done as a "return of contribution" and not a normal distributions to that the IRA custodian also returns any earnings attributed to the excess and codes the 2019 1099-R correctly.
Your *total* 2018 IRA contributions (Traditional plus Roth) cannot exceed $5,500 ($6,500 if over age 50).
If your total contributions were $8,000, then you have an excess of $2,500 if under age 50, that must be removed before April 15, 2019 to avoid a penalty. That should be done as a "return of contribution" and not a normal distributions to that the IRA custodian also returns any earnings attributed to the excess and codes the 2019 1099-R correctly.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
‎June 3, 2019
10:17 AM