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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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Experience:  10 years experience
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We filed jointly. found out that our contributions

Customer Question

we filed jointly. found out that our contributions for our Roth IRA's were in excess since we are in a different tax bracket. my question is do we need to pay tax on the interest for tax year 2015.
Submitted: 1 year ago.
Category: Tax
Expert:  Charles Markham replied 1 year ago.
It depends on how you want to handle the over-contribution. First off, you can withdraw it. If you withdraw it, you will pay taxes NEXT YEAR on the earnings from the Roth IRA. As an alternative you can recharacterize your contribution to a regular IRA. If you do this, then you aren't getting your money back, but then you don't pay taxes on the income. (I don't really like nondeductible IRA but just covering this as an option.)