My wife and I got married in 2015 and as a result we exceed the income limitations to contribute to a Roth IRA. My wife made several contributions to her Roth IRA in 2015. As I understand it, in order to avoid a penalty for such contributions, I need to have my wife withdraw all of her 2015 contributions by the April 15 filing deadline and pay the taxes on any gains she made with respect to such contributions. Once we complete this transaction, we plan to use the withdrawn amount to start a traditional IRA.
Looking for advice/confirmation that the above is the proper approach with respect to the excess contributions and that I have not overlooked any required actions. Thanks in advance for any help!