Put too much in my Roth

Forum|Forum|1 year ago
January 6, 2025
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Hi, I opened a Roth IRA in 2023 and just recently noticed that I put $550 too much in for that year. I want to correct this so I'm wondering, do I just pull the money out now and bring this to the attention of my tax professional when I file this year, and next year also? Can I move the money directly to my brokerage account? Any input is very appreciated.

Not A Product Question

mglauner

TurboTax will let you know if you overcontributed to your Roth IRA, and if you want to avoid the penalty, you have two options:

Withdraw the excess contribution plus earnings: Keep in mind that the earnings are included in your taxable income for the year the excess contribution was made, so you’ll still receive a 1099-R to report these earnings on your tax return.
Recharacterize the Roth IRA contribution as a traditional IRA contribution: Contact your plan administrator for guidance on this process. After you’ve made your recharacterization, see how to record this process in TurboTax.

Here's more detailed info on Excess Roth Contributions.