Author Topic: Re-Characterization & Excess Contributions  (Read 933 times)

PRMUSTACHE

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Re-Characterization & Excess Contributions
« on: March 22, 2016, 03:03:58 PM »
Hey Guys!

First time posting here! I have a few questions regarding my IRA's. I made an excess contribution for 2015. As long as I take out the excess plus earnings before April 15th, will I be okay? In addition, I forgot to add a re-characterization from a ROTH IRA to a traditional IRA in my 2015 tax returns. What are the steps to fix this.

P.S. I had an earnings loss during this re-characterization if that matters.

Thanks!

zephyr911

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Re: Re-Characterization & Excess Contributions
« Reply #1 on: March 23, 2016, 10:44:23 AM »
Hey Guys!

First time posting here! I have a few questions regarding my IRA's. I made an excess contribution for 2015. As long as I take out the excess plus earnings before April 15th, will I be okay? In addition, I forgot to add a re-characterization from a ROTH IRA to a traditional IRA in my 2015 tax returns. What are the steps to fix this.

P.S. I had an earnings loss during this re-characterization if that matters.

Thanks!
You need to file a Form 1040X (amendment) to provide the IRS with the correct information. The instructions will tell you how to calculate your new refund or amount owed.