Permalink Submitted by Alan - IRA critic on Wed, 2024-04-17 19:13
Yes, a 2023 excess contribution can be assigned to 2024 by paying the 6% excise tax on a 2023 Form 5329, and if the 2024 contribution space has not already been used, a 2024 5329 will absorb the 2023 excess and it will be treated as a 2024 contribution. While this avoids the removal of the 2023 excess with earnings, the 6% excise tax is usually more than the tax on the earnings.
Permalink Submitted by Alan - IRA critic on Wed, 2024-04-17 19:13
Yes, a 2023 excess contribution can be assigned to 2024 by paying the 6% excise tax on a 2023 Form 5329, and if the 2024 contribution space has not already been used, a 2024 5329 will absorb the 2023 excess and it will be treated as a 2024 contribution. While this avoids the removal of the 2023 excess with earnings, the 6% excise tax is usually more than the tax on the earnings.