What form to modify excess IRA contribution?
chillair23 asked:
I just realized that I contributed $1000 to ROTH IRA for 2007, but I also contributed $4000 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!
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I just realized that I contributed $1000 to ROTH IRA for 2007, but I also contributed $4000 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!
March 31st, 2009 at 10:19 pm
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.
April 2nd, 2009 at 3:06 am
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