Roth Excess Contribution Removed in Error
Client made a $6,500 contribution to their Roth IRA account in early 2018. After completing a 2018 Roth Conversion they believed they would have too much AGI to contribute and removed the $6,500 contribution. It was not taken into account when doing this that they did not need to include the conversion income in their MAGI calculation for purposes of the Roth Contribution so they were actulally eligible to contribute. Is there any problem with them just re contributing the 2018 Roth amount so long as they do so prior to April 15th?
Permalink Submitted by Alan - IRA critic on Tue, 2019-02-26 00:35
No problem recontributing the 2018 Roth contribution. Of course, they will still have to report the earnings for the returned contribution in income for 2018 per the 1099R they should have received.