In 2015, I dilignetly contributed monthly to a Roth IRA up the the max of $5500 with Wealthfront a Roboadvisor. I just got my taxes back for 2015 from my CPA ( not filed yet) and I went over by quite aways the $182,000 income limit for contributions to Roth IRA's. I have never made even close to the limit before so Roth IRA contributions were previously allowed for me and my wife.
My understanding so far after emailing my CPA is that I need to withdraw the $5500 that I contributed and any gains that were made before 4/18/2016 to not get penalized. I'm pretty sure the only gain would be from dividend reinvestments. The overall account is down for the year. is there an early withdrawal penalty? Can the service tell me exactly how much this is?
So what do I do with it now? Do i just cash it out? Im feeling like I could use the cash because now I owe way more in taxes than I was prepared for by April 18th ( a little bit of sticker shock but ill be ok). Can I transfer it to a traditional IRA? Can I use it to do a backdoor Roth IRA and somehow contribute it back into my Roth IRA? Im kind lost on what to do here as well as how to plan for 2016 which I have already made two monthly contributions to a my same Roth account. Any advise would be appreciated.
My understanding so far after emailing my CPA is that I need to withdraw the $5500 that I contributed and any gains that were made before 4/18/2016 to not get penalized. I'm pretty sure the only gain would be from dividend reinvestments. The overall account is down for the year. is there an early withdrawal penalty? Can the service tell me exactly how much this is?
So what do I do with it now? Do i just cash it out? Im feeling like I could use the cash because now I owe way more in taxes than I was prepared for by April 18th ( a little bit of sticker shock but ill be ok). Can I transfer it to a traditional IRA? Can I use it to do a backdoor Roth IRA and somehow contribute it back into my Roth IRA? Im kind lost on what to do here as well as how to plan for 2016 which I have already made two monthly contributions to a my same Roth account. Any advise would be appreciated.
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