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united-states income-tax roth-ira

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March 31, 2025 Score: 5 Rep: 194,027 Quality: Expert Completeness: 50%

If the person is single, then they'd need to withdraw the excess contribution with earnings by the tax due date (April 15th). The earnings would then be considered income for the year in which they were withdrawn. The person should reach out to the IRA custodian to arrange that. The custodian will calculate the earnings applicable.

If the person is married, then their spouse's earned income also comes into play. See the IRS notice about the current contribution limits:

The income phase-out range for taxpayers making contributions to a Roth IRA is increased to between $150,000 and $165,000 for singles and heads of household, up from between $146,000 and $161,000. For married couples filing jointly, the income phase-out range is increased to between $236,000 and $246,000, up from between $230,000 and $240,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

If the spouse also had no earned income, or the couple is filing separately - the same guidance for withdrawal of excess contribution applies.