topic After reaching 59 - 1/2 completed a rollorover of 401 k to traditiona IRA and also ROTH to another ROTH IRA in 2024. Now income over $240k telling me I have overcontrobuted and need to take it out of the ROTH to avoid penalties. is this right? in Get your taxes done using TurboTax

After reaching 59 - 1/2 completed a rollorover of 401 k to traditiona IRA and also ROTH to another ROTH IRA in 2024. Now income over $240k telling me I have overcontrobuted and need to take it out of the ROTH to avoid penalties. is this right?

DPLP1 — Tue, 18 Feb 2025 20:05:58 GMT

Re: After reaching 59 - 1/2 completed a rollorover of 401 k to traditiona IRA and also ROTH to another ROTH IRA in 2024. Now income over $240k telling me I have overcontrobuted and need to take it out of the ROTH to avoid penalties. is this right?

dmertz — Tue, 18 Feb 2025 21:10:23 GMT

Neither of these transactions is an IRA contribution that would be reportable anywhere under Deduction & Credits. Assuming that you made no regular Roth IRA contributions, remove the entry that you made indiicating that you did make such a regular contribution.

Re: After reaching 59 - 1/2 completed a rollorover of 401 k to traditiona IRA and also ROTH to an...

SabrinaD2 — Wed, 19 Feb 2025 00:08:02 GMT

If your modified adjusted gross income (MAGI) exceeds $240,000 in 2024, you are not eligible to contribute to a Roth IRA. Overcontributing results in a 6% excise tax on the excess amount for each year it remains in the account. To avoid this penalty, you must withdraw the excess contributions and any earnings on them before the tax-filing deadline

For more details, you can refer to the IRS guidelines

Re: After reaching 59 - 1/2 completed a rollorover of 401 k to traditiona IRA and also ROTH to another ROTH IRA in 2024. Now income over $240k telling me I have overcontrobuted and need to take it out of the ROTH to avoid penalties. is this right?

DPLP1 — Fri, 21 Feb 2025 18:50:40 GMT

Thank you