Please be aware, you will pay the 6% penalty each year the excess contribution isn't resolved. If you aren't able to apply the excess to 2025 then you will pay the 6% penalty on your 2024 and 2025 return.
Note, if you apply the excess to 2026 this is only done through your tax return. Do not contact your financial institution to apply the excess to a following year. Leave the funds in the Roth IRA. In your 2026 tax return:
- 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 from 2024 (if it wasn't carried over).
- On the "How Much Excess to 2026?" screen enter how much you want to apply to 2026.
Please see What if I made an excess Roth IRA contribution for additional options.
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