Asked by Kirt  |  Submitted November 11, 2015

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?

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  Answers  |  1

November 17, 2015

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.

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