How do I recategorize my Roth IRA contribution for 2025? I'm over the income limit, but already made the contribution.

[fanfare]

do you want to recharacterize, in preperation for a "backdoor" Roth contribution,

or withdraw the contribution, which you can do up until Tax day including extensions, with no penalty?

@jack-p-stevens 

[Opus 17 · Accepted solution]

You can withdraw the contribution as an "excess" contribution.  You will also have to withdraw the earnings attributable to the contribution, and the earnings will be taxable on your 2025 return.  The paperwork will be easier if you do the withdrawal before December 31, even though the deadline for the withdrawal is April 15, 2026.

Or, you can recharacterize the contribution as a traditional IRA contribution.  To do this, just contact the trustee or broker who holds your Roth IRA.  If you don't already have a traditional IRA, you will need to open one (the broker will do this for you).  This will be a non-deductible contribution (you can't take a tax deduction because of your income) so it must be reported on a form 8606 which Turbotax will add to your tax return.

The benefits and complications of making a non-deductible contribution to a traditional IRA are a bit complicated to explain.  Do you already have funds in a traditional IRA (at this or any other broker)?  We can explain your options if you want.