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Retirement tax questions
Yes, you may be able to classify the excess contribution as a 2025 contribution, but there are some important considerations. Since your husband is still working, you might qualify for a spousal IRA, which allows a non-working spouse to contribute to an IRA based on the working spouse’s income. However, since his income exceeds the limit for a traditional Roth IRA, you’ll need to check whether a backdoor Roth conversion is an option.
Regarding the excess contribution, you generally have until April 15, 2025, to remove it without penalty. If you leave it in the account, it may be subject to a 6% excise tax each year until corrected. TurboTax requiring Form 5329 suggests that the excess contribution is being flagged for tax purposes. This form is used to report additional taxes on excess contributions, early withdrawals, and other retirement account issues.
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