I accidentally contributed too much to my IRA's this year...what to do?

[thefed]

I'm with Vanguard....but am to curious to wait til the a.m. to find out what they say. It happened by mistake using automatic deposits....over by $420


Any ideas?

Thanks

 

[Sarah in SC]

They can send you an IRA distribution form and it has a portion that is for return of over-contribution. They will figure out the gains (if any) and refund it to you. Or at least this is how Schwab does it. YMMV

 

[Westernskies]

I did the same thing early last year- but Federated didn't send a refund check until after the first of this year, so the money worked for me all year.
(it didn't accomplish much, but at least it was on the payroll )

 

[slouch]

I did the same thing with Vanguard a few years back. The process is painless, just give them a call. Instead of withdrawing the excess contribution, you could roll it over into a traditional nondeductible ira. From what I understand, in CY2010 the nondeductible ira can then be converted to a roth ira, regardless of your income levels.