We contributed too much to a 2013 IRA as our adjusted gross income exceeds the limits. What steps must be taken to correct this error?

ANSWER

The BIDaWIZ Team's Answer:

You have a few different options and our recommendation depends on the specific circumstance. However, if you timely filed your tax return by April 15, you receive an automatic six-month extension to remove the excess amount. Any excess contribution that is not removed by the deadline accrues a 6% penalty for every year it remains in the IRA. This is referenced in IRC Section 4973 & IRS Publication 590.