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Retirement tax questions
All taxable income must be included in MAGI.
If your MAGI was over the limit to contribute to Roth, then the contribution is an excess subject to a 6% penalty that repeats each year until removed of can be applied to a subsequent year that you are not over the limit. To avoid the 2018 penalty, if you timely by the April 15 due date, then you have until Oct 15 to remove the excess., otherwise the 2018 6% penalty will apply.
If your MAGI was over the limit to contribute to Roth, then the contribution is an excess subject to a 6% penalty that repeats each year until removed of can be applied to a subsequent year that you are not over the limit. To avoid the 2018 penalty, if you timely by the April 15 due date, then you have until Oct 15 to remove the excess., otherwise the 2018 6% penalty will apply.
**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 7, 2019
5:09 PM