I contributes 2250 to a ROTH IRA last year in error. How do I fix it?

[Guest aerofreaky]

I made contributions totaling $2250 in 2001 towards a ROTH IRA. I didn't realize that I contributed too much until I recently reviewed my checkbook.

I believe I have to take a disbursement and pay some penalty and then report this on my 2001 tax return. If I don't fix it now I will have big problems in the future.

Can anyone tell me what I actually need to do?

Thanks in advance for your assistance.

J.

[Guest dmj1998]

who is your roth ira provider? didn't they notice you had hit the $2000 limit? check with them to see if they have procedures for distributing the excess contribution amount?

[Guest aerofreaky]

Waterhouse and Fidelity. That is part of the confusion. I have 2 different ROTH IRAs.

[Appleby]

Submit a distribution request to your IRA provider for a “Return of Excess Contribution” BY APRIL 15 2002 for the excess contribution amount. If there are any earnings, you will need to add the earning to your income for the year the contribution was actually deposited to the IRA.