Hi, I over deposited $5K to IRA in Jan 2021 for 2020 tax year. I have max my 401K and Roth with my employer for 2020. MAGI is 74K Pls help? Roth 20/21? Note on returns?

A backdoor Roth will not work for you this year due to the Pro Rata Rule. This requires you to have to have a zero balance in all traditional IRAs, SEP IRAs, and Simple IRA’s on 12/31.  This could be an option for you next year but you would have to either rollover your IRA's to the 401k or pay the tax on the conversion.

 

If the excess amount is the only contribution you made to the IRA—and no other contributions, distributions, transfers, or recharacterizations occurred in the IRA—you can correct the excess by simply distributing the entire IRA balance by the applicable deadline.

 

For 2021, 2020 and 2019, the total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than: $6,000 ($7,000 if you're age 50 or older), 

 

The best option would be to withdraw you excess contributions and any earnings before you file.