Roth IRA Excess Contribution

Here's how to undo a Roth contribution.

By Matthew Frankel, CFP – Updated Nov 16, 2025 at 7:25 AM | Fact-checked by Parker Hicks

Key Points

Monitor total annual contributions to both Roth and traditional IRAs to avoid penalties.
Remove excess contributions by tax deadline to escape a 6% yearly tax.
Recharacterize Roth excess to a traditional IRA if income limits are exceeded.

Loading paragraph...

A person sits with a laptop on a couch. — Image source: Getty Images.

Loading image...

Loading paragraph...

Calculating Net Income

Loading callout...

Loading paragraph...

Withdraw the excess the following year

Another option for those who didn't correct their mistake before the tax deadline in the year they made an excess contribution is to withdraw it next year. If you do this, you have to take out only the contribution, not any earnings. You'll pay the 6% excise tax for the year you left the excess contribution in your account, but you won't have to worry about this tax in future years.

The government charges you ordinary income tax when you withdraw these excess contributions, even though you already paid taxes on this income the year you earned it. It will also charge you a 10% early withdrawal penalty if you're younger than 59 1/2, so this isn't always an affordable way to fix your problem.

Loading paragraph...

Related Retirement Topics

Loading paragraph...

What Is a Roth IRA? How to Get Started

Want to get tax-free distributions in retirement? A Roth IRA may be right for you.

What Is an IRA and How Does It Work?

Under the umbrella of individual retirement accounts, there are many options.

401(k) to Roth IRA Conversion

Looking to turn your 401(k) into a Roth IRA? Here's how and why it's a good idea.

What to Know About the Roth IRA Five-Year Rule

All investors should be aware of these three five-year rules. You may need to wait before you can access your Roth IRA funds.

Loading hub_pages...

Loading paragraph...

Loading faq...

About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst and personal finance expert covering financial stocks, REITs, SPACs, and personal finance. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, The National Desk, and other TV networks and publications for his financial, stock market, and investing expertise.

TMFMattFrankel

@MattFrankelCFP

The Motley Fool has a disclosure policy.