What this line means
The amount of excess contributions in your Roth IRA at the end of the year. The same $7,000 contribution limit ($8,000 if age 50+) applies across all your IRAs combined — traditional and Roth together. Additionally, Roth IRA contributions phase out at higher income levels. Any amount above the limit or above your reduced contribution amount based on income is an excess contribution.
Does this apply to you?
- You contributed to a Roth IRA when your modified AGI exceeded the phase-out limits
- You contributed more than $7,000 ($8,000 if 50+) across all your IRAs combined
- You had excess Roth contributions from a prior year that remain uncorrected
- You made a Roth conversion that created an excess situation
Easy to overlook
The Roth IRA income phase-out reduces your allowable contribution For 2025, Roth IRA contributions phase out between $150,000 and $165,000 (single) or $236,000 and $246,000 (married filing jointly). If your modified AGI falls within the phase-out range, your contribution limit is reduced below $7,000. Contributing the full $7,000 when your limit is reduced creates an excess. 1 IRS Publication 590-A — Contributions to IRAs
Recharacterizing a Roth contribution as traditional can fix the excess If you contributed to a Roth IRA but your income exceeded the limit, you can recharacterize the contribution as a traditional IRA contribution before the tax filing deadline (including extensions). This eliminates the Roth excess without withdrawing the money. The recharacterized amount is treated as if it was always a traditional IRA contribution. 2 IRS Form 5329 instructions — Part IV
Watch out for this
Contributing the full $7,000 to both a traditional IRA and a Roth IRA in the same year. The $7,000 limit is a combined limit across all IRAs. If you contribute $7,000 to a traditional IRA and $7,000 to a Roth IRA, you have a $7,000 excess. The combined total across all IRA accounts cannot exceed $7,000 ($8,000 if 50+).
Footnotes
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IRS Publication 590-A, Contributions to Individual Retirement Arrangements, Roth IRA Phase-Outs. https://www.irs.gov/pub/irs-pdf/p590a.pdf ↩
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IRS Form 5329 Instructions, Part IV. https://www.irs.gov/instructions/i5329 ↩