If I contributed the maximum to my Roth IRA for 2015, & if my modified adjusted gross income exceeds allowable limit, what & when should I do to correct this?

Asked by Kirt

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Answered by Rudy Ruiz, Financial Adviser in Camarillo, CA
The most easy thing to do is simply pull the contribution out of the Roth IRA before the Tax Day April 15th. The post-tax amount you contributed will not be penalized but Gains might be taxed and penalized ( i.e. Roth account opened for 5 years and you are 59 1/2 ). Another option would be to covert your contribution to a Traditional IRA. I am assuming if you have exceeded the MAGI allowable amount, then you have maxed your contribution to a 401k or Traditional IRA. Therefore, this may not be the option to use. I would recommend asking your financial advisor for guidance on your best option. | 11.17.15 @ 20:53
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