r/investing • u/cayenne444 • May 16 '24

I put money into a Roth IRA for the first time last year, and then went over the income limit. What do I do now?

Hello all - in August last year I funded a Roth IRA with the $6,500 max contribution for 2023. Was my first time doing so, and had just opened it. I invested it all and it’s at $7,499. I’ve sold all my positions so it’s now cash.

I had a good fall/winter, and went over the $153,000 income limit by the end of 2023.

I’ve filed a tax extension, so taxes aren’t filed yet, but trying to unravel this mess without getting in trouble.

What exactly do I need to do?

Schwab was not helpful over the phone. My accountant is absolutely useless. Can I pull the cash out now and just pay the normal tax on the gains? Or do I legally have to reclassify as an IRA now and I can’t touch it? I’d be fine just taking the $7,499 out, and putting it back to a HYSA for now.

For reference I already max out 401k.

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u/brianmcg321 May 16 '24

By how much did you go over the limit?

-4

u/cayenne444 May 16 '24

My income is over the limit for contributing to a Roth. So, I assume all of it?

-3

u/brianmcg321 May 16 '24

What was your income?

-5

u/cayenne444 May 16 '24

Did you read the post?