Solved: Roth IRA excess contributions - how to handle now (Dec 2024)

john307sf · Dec 30, 2024 12:29:59 AM

Hello all! I’d appreciate some advice on how to handle a Roth IRA excess contribution issue from 2021: 2021: Contributed $6,000 to a Webull Roth IRA, but income was above the limit (filed as Married Filing Separately with income over $10,000). What to do now with the $6,000 excess? 2022: Contributed $6,000 to the same Webull Roth IRA (eligible this year, no issues). 2023: Contributed $6,500 to a Vanguard Roth IRA (eligible this year, no issues). 2024: Contributed $7,000 to the same Vanguard Roth IRA using the backdoor method (no issues). I plan to remove the $6,000 excess contribution from 2021 now (2024). Current balance of my Webull Roth IRA account: approximately $13,500, with around $1,500 in capital gains/earnings. Questions:<UL><LI>How can I resolve these errors?</LI><LI>Do I need to calculate and withdraw the Net Income Attributable (NIA), or can I remove just the $6,000?</LI><LI>Will I be subject to any excise tax for the excess contribution, and if so, how can I resolve that?</LI></UL>Additional info: I don't have any Traditional IRA or 401(k) plans (all $0). Many thanks in advance for your assistance!