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

Austin704

Recycles dryer sheets
Joined
Aug 31, 2016
Messages
191
Location
Austin
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
 
If you use Fidelity, they have an easy to use online form that does all the calculations for you. It’s pretty easy.
 

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