Question

AGI too high...excess Roth IRA contribution needs to be moved before filing 2019 taxes.

Forum|Forum|6 years ago
February 16, 2020
1 reply
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Greetings! I just found out doing my taxes that because my AGI is too high this year, all of my $7,000 Roth contribution is in excess. I know one option is to re-characterize the $7k and earnings into an IRA. Are there any other options?

1. Can I withdraw the excess contribution and put it into my son's 529 plan?

2. Can I withdraw the excess contribution without penalty and place into a checking or savings account? Then count the earnings on 1099-R?

3. Are there any other options? I have not filed yet.

TurboTax Home & Biz Windows

macuser_22

Employee

You can ask the IRA trustee for a "return of contributions" that will also return any earnings attributed to the excess. That will be reported on a 1099-R with a code PJ in box 2. Only the earnings in box 2a will be taxable. You can do whatever you want with the returned money.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**