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February 18, 2025
Question

After reaching 59 - 1/2 completed a rollorover of 401 k to traditiona IRA and also ROTH to another ROTH IRA in 2024. Now income over $240k telling me I have overcontrobuted and need to take it out of the ROTH to avoid penalties. is this right?

  • February 18, 2025
  • 2 replies
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    2 replies

    Employee
    February 18, 2025

    Neither of these transactions is an IRA contribution that would be reportable anywhere under Deduction & Credits.  Assuming that you made no regular Roth IRA contributions, remove the entry that you made indiicating that you did make such a regular contribution. 

    DPLP1Author
    February 21, 2025

    Thank you

    February 19, 2025

    If your modified adjusted gross income (MAGI) exceeds $240,000 in 2024, you are not eligible to contribute to a Roth IRA. Overcontributing results in a 6% excise tax on the excess amount for each year it remains in the account. To avoid this penalty, you must withdraw the excess contributions and any earnings on them before the tax-filing deadline

    For more details, you can refer to the IRS guidelines