You'll need to sign in or create an account to connect with an expert.
Because you did. Your overall family limit is $6900, on top of your personal limits of $6900 and $3450.
One of you needs to withdraw $3450 plus the earnings as an "excess contribution." This is a special procedure not a regular withdrawal. The money will be added to your taxable income (you lose the tax deduction).
If you don't withdraw the excess, you pay regular income tax anyway, plus an extra 6% penalty, and you pay the same penalty in every future year as long as the excess remains in the account. (If you leave the money in the account, and only contribute $3550 in 2019, you can consider the other $3450 excess from this year, as part of next year's limit and that will eliminate the penalty.)
For 2019, your overall family limit is $7000, so one of you needs to reduce your contributions before you get in too deep.
Because you did. Your overall family limit is $6900, on top of your personal limits of $6900 and $3450.
One of you needs to withdraw $3450 plus the earnings as an "excess contribution." This is a special procedure not a regular withdrawal. The money will be added to your taxable income (you lose the tax deduction).
If you don't withdraw the excess, you pay regular income tax anyway, plus an extra 6% penalty, and you pay the same penalty in every future year as long as the excess remains in the account. (If you leave the money in the account, and only contribute $3550 in 2019, you can consider the other $3450 excess from this year, as part of next year's limit and that will eliminate the penalty.)
For 2019, your overall family limit is $7000, so one of you needs to reduce your contributions before you get in too deep.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
jl_brooks
Level 1
rghinelli
New Member
megan0956
Returning Member
riteden
Returning Member
crayapureddy
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.