Incorrect Roth IRA contributions.
If I made Roth IRA contributions over several years, and, I discovered that I was not allowed to make these contributions, can i recharacterize these monies to a non-deductible IRA? If not, what is my options to correct?
Permalink Submitted by Jose Morales on Fri, 2009-05-15 15:54
The deadline to recharacterize is your tax filing due date plus extensions, if you filed in a timely manner. You can recharacherize any contributions that fall within this time period. Contributions made earlier would be considered excess contributions if you truly were not eligible to make a Roth contribution. You would need to file form 5329 and pay a 6% tax penalty for each tax year in which you made an excess contribution that could not be recharacterized.