If I apply an excess roth ira contribution to a future year does the earnings/interest on that initial contribution get to stay in the roth ira?

[danielht98]

For example let's say in 2024 I made an excess roth ira contribution of $7000 and that contribution grew to $8000. If I choose to apply that $7000 excess contribution as 2025's roth ira contribution would I be able to keep the full $8000 in my roth ira or would I still have to withdraw the $1000 in growth? I'm aware I'd still have to pay the 6% excise tax for 2024 if I did this.

[dmertz · Accepted solution]

"If I apply an excess roth ira contribution to a future year does the earnings/interest on that initial contribution get to stay in the roth ira?"

Yes.