Correcting 2024 Excess Contribution to ROTH IRA

[kieranmccllgh1]

I contributed $4,800 to a ROTH IRA in 2024 and wasn't eligible to contribute to a ROTH IRA in 2024 so the $4,800 was an over contribution. For my 2024 tax return I filed a form 5329 and paid the 6% penalty. For my 2025 tax return I am eligible to contribute to a ROTH IRA and contributed $1,800 in 2025. For the $4,800 in excess contributions I requested a excess contribution withdrawal from my account in March 2026. Since I already submitted the excess contribution withdrawal in 2026 I will need to pay the 6% penalty and file a form 5329 with my 2025 return as well right? 

[fanfare]

If you remove the !,800 you can use that to offset the 2024 excess  by 1,800,  (more if your allowed contribution is greater) .

This will reduce your 2025 penalty.

That's minus (6% of $1,800 ) , plus income tax on anything the $1,800 earned while in the Roth IRA.

If you don't want the complication, pay the full 6% again.

@kieranmccllgh1