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New Member
posted Mar 27, 2023 3:32:14 AM

I made excess contributions to both a traditional and Roth IRA.Can I apply the withdrawal to a loan repayment against my IRA without incurring the penalty?

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1 Replies
Expert Alumni
Mar 29, 2023 12:13:17 PM

No, the earnings from the excess contribution will be taxable and subject to the 10% early withdrawal penalty if withdrawn before December 29, 2022. Please see  What if You Contribute Too Much? and How to treat withdrawn interest or other income for details.