Options for handling over contribution to a Roth IRA

@mpower13 

You have until Oct 15 if you file by Tax Day or request an extension.

if you ar partly allowed a contributon, and ask for return of only excess "contributions plus earnings" back (2,490), you must add a fudge factor
for the earnings which if positive, increase your MAGI for Roth purposes leaving you still with an excess.

To offset with an avilable contribution you must be allowed to make that contribution.
Since you already contributed for 2025 that money is no longer available as an offset for 2024

If you wait until after Oct 15, any earnings on a 2024 excess will remain in the Roth IRA. you will pay 6% a year until you take the excess out

Please be aware, you will pay the 6% penalty each year the excess contribution isn't resolved. If you aren't able to apply the excess to 2025 then you will pay the 6% penalty on your 2024 and 2025 return. 

Note, if you apply the excess to 2026 this is only done through your tax return. Do not contact your financial institution to apply the excess to a following year. Leave the funds in the Roth IRA. In your 2026 tax return:

1. Click on “Jump to IRA contributions"
2. Select “Roth IRA”
3. On the "Do you have any Excess Roth Contributions" answer "Yes"
4. On the "Enter Excess Contributions" screen enter the total excess contribution from 2024 (if it wasn't carried over).
5. On the "How Much Excess to 2026?" screen enter how much you want to apply to 2026.

Please see What if I made an excess Roth IRA contribution for additional options.