Yes, you are currently over the combined IRA limit for the 2026 tax year, which is $7,500 if you are under age 50 (or $8,600 if you are 50 or older). Your total contribution of $11,500 ($3,500 tradit...
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Yes, you are currently over the combined IRA limit for the 2026 tax year, which is $7,500 if you are under age 50 (or $8,600 if you are 50 or older). Your total contribution of $11,500 ($3,500 traditional + $8,000 Roth) puts you $4,000 over the cap, and since a rollover is simply a transfer of existing funds, it does not "reset" or increase your annual contribution allowance.
Regarding the question, you should answer "No," as a rollover is not considered a "repayment" of a previous distribution.
To fix the over-contribution and avoid a 6% annual penalty, you can contact your brokerage to re-characterize or designate the initial $3,500 Traditional IRA contribution to the 2025 tax year, provided you do so by the April 15, 2026 deadline and haven't already hit your 2025 limit of $7,000 ($8,000 if 50+). If you apply that $3,500 to 2025, your 2026 total would drop to $8,000, leaving you only $500 over the 2026 limit, which can be resolved through a withdrawal of excess contributions.