Back out early-year Roth contributions if income exceeds MAGI limits later in the year?

[Austin704]

Greetings!

My current income is well below the $150k-165k single filer threshold level for making Roth IRA contributions. I've been making regular contributions since January. However, I've been offered a job starting in the second half of the year that would push my total MAGI for the year above the limit for Roth contributions. Must I back out those contributions and the associated gains before I file my taxes next year to avoid a penalty? If so, would it be better to do that now or wait until later in the year (or even next year)?

Thanks

 

[MarieIG]

I found some info on this:

What to Do If You Contribute Too Much to Your Roth IRA

If you discover that you've contributed too much money to your Roth IRA for the year, there are a few ways to fix the problem and avoid tax penalties.

www.investopedia.com

 

[Austin704]

Perfect, thank you. I should have looked there before posting...

 

[COcheesehead]

If you use Fidelity, they have an easy to use online form that does all the calculations for you. It’s pretty easy.