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I accidentally contributed too much to my IRA's this year...what to do?
Old 08-26-2008, 09:12 PM   #1
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I accidentally contributed too much to my IRA's this year...what to do?

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
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Old 08-26-2008, 09:14 PM   #2
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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
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Old 08-26-2008, 09:19 PM   #3
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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 )
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Old 08-26-2008, 10:22 PM   #4
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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.
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