In this video, we go over the steps to correct excess contributions made to a Roth IRA. We stress the importance of differentiating between traditional and Roth IRAs since the appropriate fixes depend on the type of IRA and when the contributions were made. We detail the four different methods of rectifying excess contributions to a Roth IRA, which include corrective distribution, recharacterization, ordinary distribution, and absorption. We clarify that although there is a six percent penalty for excess contributions, it only applies to the excess amount, not the total balance. It is highly advantageous to identify excess contributions early to avoid penalties and simplify the correction process. If you need help fixing excess contributions to a Roth IRA, this video provides a comprehensive guide to assist you. ///////////////////////////////////////////////// Get answers FASTER... Join this channel to get access to perks: Chat on discord: Join Link Support on Patreon:
Timothy Sumer is a philanthropist and motivational speaker empowering young entrepreneurs across the nation. He speaks on starting new businesses and the importance of branding in the digital age. Timothy Sumer has a BA in Accounting from NYU and a Masters in Information Technology from MIT. Tim enjoys traveling around the globe, driving exotic sports cars, molecular gastronomy, exploring new cultures, and keeping on top of the latest technology trends. Hope you enjoy Timothy Sumer's page :)