If I contributed 5500 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
- 5500 to 6500 if age 50 or older. If you contribute more than the amount you’re allowed, you’ll pay a .06 excise tax.
To avoid the .06 excise tax, contact your IRA plan administrator to request either of these:
- Redesignate the excess IRA contributions to the 2018 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.
What should you do if you don't agree with an IRS adjustment letter? Find out more and get tax answers at H&R Block.
There's a new IRS process for those that have an expired ITIN. Here is some information from H&R Block that you need to know before your ITIN renewal.
Does the early 401k withdrawal penalty apply if it was your only source of income for the year? Learn more and get tax answers at H&R Block.
Learn more about late filing and payment penalties from the tax experts at H&R Block.