- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
It's not clear why you have a $2000 excess contribution but only $500 in the account. Did you previously withdraw money from this account, or do you have more than one Roth IRA account?
If you have more than one account, you can withdraw the excess from any Roth IRA, it does not have to be the account that the excess was contributed to.
If you previously withdrew funds in 2024, or in 2025, so that you have an excess contribution of $2000 but only $500 in the account, you can contribute $1500 as a contribution for 2025, and then withdraw $2000 using the special "withdrawal of excess contribution" procedure, which will be for the 2024 tax year even though the withdrawal happens in 2025. Once the money is contributed into the account, it loses its "identity" as to where it came from. It is just considered part of your total contributions, it does not have an identity as this dollar was from 2024 and this dollar was from 2025.