I contributed to a Roth but my income ended up too high — what now?

If you're within the phase-out band, only PART of your contribution is excess — the calculator shows exactly how much. Fix it by your return's due date including extensions — April 15 of the following year, or October 15 if you extend — either by withdrawing the excess plus its earnings (NIA) or by recharacterizing to a Traditional IRA, often followed by a Backdoor Roth conversion. If you file on time without extending, you still have until October 15, but you then file an amended return marked "Filed pursuant to section 301.9100-2". Recharacterizing cures an excess caused by the Roth income limit only; if you went over the annual IRA limit or your taxable compensation, withdraw the excess instead.

Is there a 10% penalty on the earnings I withdraw?

No — not on a timely corrective distribution. SECURE 2.0 §333 (effective for any IRS determination made on or after December 29, 2022 — even for a correction made earlier) eliminated the 10% early-withdrawal penalty on the NIA portion of a timely correction. Much of the older online content still says otherwise; it's stale.

What if my account LOST money since the contribution?

Then the NIA is negative and you withdraw LESS than the excess. The regulation cuts both ways — Reg. §1.408-11 applies the same formula whether the market went up or down.

What is the 6% excise tax?

IRC §4973 imposes a 6% tax for EACH year an excess contribution remains in the account, applied to the LESSER of the excess or the total value of all your Roth IRAs on December 31. It's reported on Form 5329 and applies again for each year the excess stays in the account, until you either withdraw the excess or absorb it against a future year's contribution room.

How do I calculate earnings on an excess contribution?

Treas. Reg. §1.408-11 defines NIA = Excess × (Adjusted Closing Balance − Adjusted Opening Balance) ÷ Adjusted Opening Balance. AOB is the balance just before the deposit that contained the excess, plus that whole deposit (not just its excess part), plus any other contributions since; ACB adds back any distributions taken since. The regulation's own example: a $1,600 deposit into a $4,800 IRA, $400 of it returned when the IRA is worth $7,600 — AOB $6,400, NIA $75. If you made several deposits for the year, the last one is treated as the excess first. The calculator shows the AOB/ACB waterfall.

Retirement · Excess Contribution

Excess Roth IRA Contribution Fixer

Two questions, one clean answer: are you actually over the Roth IRA limit — and if so, exactly how much do you need to withdraw (or recharacterize) to make it right?

IRS-Sourced

Updated August 24, 2026Reviewed for 2025 & 2026 tax years

Reg. §1.408-11 · IRC §4973 · SECURE 2.0 §333

You're still within the timely-correction window for tax year 2025: the due date of your return including extensions — April 15, 2026, or October 15, 2026 if you extend. If you file on time without extending, you still have until October 15, 2026, but you then file an amended return marked "Filed pursuant to section 301.9100-2". You can withdraw the excess plus NIA or recharacterize to a Traditional IRA (an income-limit excess only). SECURE 2.0 §333 removed the 10% penalty on the NIA — only ordinary income tax on the earnings.

How much do I need to withdraw to fix an excess Roth IRA contribution?

You over-contributed by $4,660. Your timely corrective distribution is $4,905 — the excess ($4,660) plus NIA of $245. The NIA is taxable as ordinary income in the year of the contribution; no 10% early-withdrawal penalty applies (SECURE 2.0 §333).

Allowed Roth contribution (2025, single, MAGI $160,000): $2,340 (partial).
NIA formula: excess × (ACB − AOB) ÷ AOB per Reg. §1.408-11, where AOB includes the whole deposit that held the excess. NIA can be negative if the market fell.
Timely fix: no 10% penalty on the NIA (SECURE 2.0 §333, for IRS determinations made on or after December 29, 2022).
Missed deadline: 6% excise tax per year on the excess or the Dec 31 value of all your Roth IRAs, whichever is less (IRC §4973, Form 5329).

Source:Treas. Reg. §1.408-11 · IRS Pub 590-A

Step 1

Are you actually over?

Tax year

Filing status

MAGI

Age at year-end

Amount you already contributed

Taxable compensation for 2025

Contributions to traditional IRAs for 2025

Did you file your 2025 return by April 15, 2026, or get an extension?

Yes (or April 15, 2026 hasn't passed yet)

No — filed late or not yet, with no extension

Step 2

Fix it — NIA inputs

Total amount of the deposit that contained the excess

Balance immediately BEFORE that deposit

Current account balance

Other contributions/transfers-IN since

Distributions/transfers-OUT since

Years the excess has remained (if past the deadline)

Step 1 result — allowed amount

Allowed direct contribution

$2,340

Verdict

partial

Phase-out band

$150,000 – $165,000

Excess contribution

$4,660

You're in the phase-out band — only $4,660 of your $7,000 contribution is excess. The other $2,340 is fine and can stay.

Step 2 result — corrective distribution

Adjusted Opening Balance (AOB)$57,000

Adjusted Closing Balance (ACB)$60,000

Net Income Attributable (NIA)$245

Total corrective distribution$4,905

Timely correction: NIA is taxable as ordinary income for the year of the contribution. No 10% early-withdrawal penalty applies (SECURE 2.0 §333).

Three ways to fix it

Withdraw + NIA

Clean cut. Best when you have room in future years and just want the excess out of the account.

Recharacterize → Backdoor

Move to a Traditional IRA, then convert back via Backdoor Roth. Best when income is permanently over the direct-Roth ceiling. This cures an excess caused by the Roth income limit only. If you went over the annual IRA limit or your taxable compensation, moving the money to a traditional IRA leaves the same excess there — withdraw it instead.

Absorb + 6% excise

Leave it, pay the 6% for each year, and let future room absorb it. Rarely optimal unless correction cost exceeds the excise.

Sources & References

Primary references used for this content

Pub 590-A

IRS Pub 590-A — Contributions to IRAs (NIA & excess rules)

Treas. Reg. §1.408-11 context and excess contribution mechanics.

View on irs.gov

Form 5329

About Form 5329 — Additional Taxes on Qualified Plans

Reports the 6% excise tax on uncorrected excess contributions.

View on irs.gov

✓2 primary sources; links re-checked on a weekly rotation by the source watcher

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Disclaimer: This calculator provides estimates for educational purposes only. Not tax, legal, or financial advice. Results may vary based on your specific circumstances. Consult a qualified CPA or tax professional for personalized guidance.