No. of Recommendations: 2
The simplest way to deal with this problem is to recharacterize your excess contributions as conventional IRA contributions. That gives you effectively two accounts--a Roth and an IRA at the same custodian. But this is standard procedure. Contact your custodian for the account. They should be able to tell you how.

Yes, you can reverse the contributions, withdraw funds and then deal with capital gains, but this will probably require the assistance of your tax man again. That is the hard way. Recharacterizing the excess contributions is staight forward and less paperwork.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.