If I contributed $6,000 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
- $6,000 to $7,000 if age 50 or older. If you contribute more than the amount you’re allowed, you’ll pay a 6% excise tax.
To avoid the 6% excise tax, contact your IRA plan administrator to request either of these:
- Redesignate the excess IRA contributions to the 2023 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 triggers the IRS to audit a tax return? Learn how common tax mistakes and errors can be a red flag and affect your chances of IRS issues.
Find the current percentages for federal income tax rates, capital gains tax rates, Social Security tax rates and more from the tax experts at H&R Block.
The key to understanding your w-2 form is decoding the boxes and numbers. Learn how to read your w-2 form with this box-by-box infographic from H&R Block.
The tax experts at H&R Block outline how students and parents can file Form 8863 and document qualified expenses. Read about Form 8863 here.