I had been contributing $100 per month to a Roth IRA for awhile, but this tax year 2024 was the first year I could afford to actually put in the actual limit of $7000. I performed a backdoor Roth Conversion in December because I didn't know what my MAGI would be since I just started my new job in the middle of the year with a higher salary, and I added $6300 to my previous $700 in contributions to equal $7000. However, I just saw on my 1099-R form that I somehow contributed $6300.06 to the traditional Roth and converted it to the Roth IRA, with a total of $7000.06 as my total 2024 contribution. How do I best proceed with this small amount of excess contribution? Do I need to ask my custodian to remove the $0.06 and investment income and recharacterize it? How would I go about doing this on TurboTax? This is my first time doing something more complicated than submitting my W-2's, so please forgive my ignorance. Thank you very much in advance for your help!
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I believe you mean you over contributed to your IRA by $0.06. If so, when you enter the contribution in TurboTax, you can round the amount down so the excess won't show anywhere. Because the amount isn't significant, there would be no tax consequence to it anyways, as you would only be penalized on the excess amount of your contribution, which is insignificant.
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