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I am owing a penalty for an excess contribution to my Roth IRA. There is a "What can I do?" link that does not work. Where can I find this information?

 
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2 Replies

I am owing a penalty for an excess contribution to my Roth IRA. There is a "What can I do?" link that does not work. Where can I find this information?

Did you enter your income yet?  You can only make IRA contributions up to the amount of your compensation for working (wages or self-employment income).  So the program will list an error if you enter your IRA contributions before you enter your income.  Ignore the message, it will go away once you enter your income. 

MayaD
Employee Tax Expert

I am owing a penalty for an excess contribution to my Roth IRA. There is a "What can I do?" link that does not work. Where can I find this information?

To avoid paying the 6% penalty you can:

 

  • Withdraw the excess contribution plus earnings: Keep in mind that the earnings are included in your taxable income for the year the excess contribution was made, so you’ll still receive a 1099-R to report these earnings on your tax return
  • Recharacterize the Roth IRA contribution as a traditional IRA contribution: Contact your plan administrator for guidance on this process. 

For more information please check :

What happens if I made an excess Roth IRA contribution

irs.gov

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