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Why is my Roth IRA contribution increasing my tax due? Wasn't I already taxed on this income?

 
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1 Reply
DanaB27
Expert Alumni

Why is my Roth IRA contribution increasing my tax due? Wasn't I already taxed on this income?

Your tax might be increased because of the excess contribution tax. 

 

Your Roth IRA contribution might be limited based on your filing status and income. If you exceed this limit, excess contributions are taxed at 6% per year as long as the excess amounts remain in the IRA. Please see  Amount of Roth IRA Contributions You Can Make for 2019.

 

To avoid the excess contributions tax:

  • withdraw the excess contributions from your IRA by the due date of your individual income tax return (including extensions); and
  • withdraw any income earned on the excess contribution.
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