If I contributed $5,500 to each of my two Roth IRA accounts, will I owe a penalty?
Yes. You’re limited to total Roth IRA contributions for the year that are the lesser of:
- 100% of your compensation
- $5,500 to $6,500 if age 50 or older. If you contribute more than the amount you’re allowed, you’ll pay a 6% excise tax.
To avoid the 6% excise tax, contact your IRA plan administrator to request either of these:
- Redesignate the excess IRA contributions to the 2017 tax year. You can only do this if you make the contribution after year-end and before the due date of the return.
- Withdraw the excess contributions and their earnings. You must do either by your return’s due date.
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You've got your forms. And we've got your back. There's only one thing left to do. Let's do this.
So how much will you get (or owe) this year? That’s the million-dollar question. We happen to have three very useful calculators to help you estimate your refund or balance due.