What form to modify excess IRA contribution?

April 9, 2010 dianne 2 comments

I just realized that I contributed 00 to ROTH IRA for 2007, but I also contributed 00 to Traditional IRA. I assume it is not ok, but I don’t know what I should do now. I don’t think it will affect my refund, but do I still need to file corrections? Thanks for any help!

Comments

Written by conusgypsy about 5 months ago.

You can contribute the full $5,000 if you are 50 or over. If you are not, then you will need to remove $1000. If your AGI is <99,000 single or $156,000 married, then I would take the $1,000 from the traditional IRA. You need to call the company that you invested the money with an request an "excess removal" form. Any earnings will be taxed, but not until you file next year’s return. You will get a 1099 for it.
Written by Payroll Princess about 5 months ago.

If contributions to your Roth IRA for a year were more than the limit, you can apply the excess contribution in one year to a later year if the contributions for that later year are less than the maximum allowed for that year. A 6% excise tax applies to any excess contribution to a Roth or Traditional IRA combined. The additional tax is figured on Form 5329.

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What form to modify excess IRA contribution?

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