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I contributed $3000 to a traditional bank IRA and forgot about it. Later, I contributed an additional $6000 to an IRA annuity. So, I over contributed by $3000.

How can I correct this error?

Bob Baerker
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linda
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2 Answers2

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You can correct it before April 15th (Tax day) without penalty. You'll need to withdraw the portion that is over contributed and a portion of the earnings according to a formula.

Your last contribution is the extra contribution, so you'll need to make the withdrawal from the IRA annuity.

Alex B
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Contact the support department at the financial institution that manages the annuity and ask them to apply the contribution to the 2012 tax year instead of 2011. You should not need to withdraw the money unless you want to or your financial institution insists. If you already reported the entire $6k of contributions on your 2010 taxes, you will need to file an amendment to your tax return. Otherwise just report the first $3k on your 2011 tax return, and the additional $3k on your 2012 tax return.

ThisIsTheDave
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