152. Put Too Much Money in a Roth, What Happens Next?
Accidentally contributed too much to your IRA? Don't panic.
It's one of the most common retirement planning mistakes we see, and in many cases, it's completely fixable, if you know what to do.
Whether you received a raise, earned an unexpected bonus, sold a business, or simply didn't realize you exceeded the IRS contribution limits, making an excess IRA contribution can happen to anyone.
In this episode, Amanda and Shawn Hanquist explain what an excess IRA contribution is, the potential tax consequences of leaving it uncorrected, and the steps you can take to fix the mistake before it becomes more costly.
In This Episode, We Discuss:
- What an excess IRA contribution actually is
- The most common reasons people overcontribute
- The IRS 6% excise tax—and how to avoid it
- Your options for correcting an excess contribution
- Common mistakes people make after discovering the problem
- How proactive financial planning can help prevent issues like this in the future
Key Takeaway
An IRA overcontribution doesn't have to derail your retirement plan. The sooner you identify the issue and take action, the more options you'll typically have to correct it and avoid unnecessary penalties.
If you're unsure whether you've contributed too much—or have questions about your retirement strategy—working with a qualified financial advisor can help ensure your savings stay aligned with your long-term goals.
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The Fit Wealth Podcast is brought to you by Plan Group Financial, Inc. (PGF) d/b/a Fit Wealth Advisors. PGF d/b/a Fit Wealth Advisors is an investment adviser registered under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. This presentation has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Past performance is not indicative of future results.