What is best way to undo an invalid contribution to Roth IRA?

[Guest AD]

Last year I inadvertantly had a minimum distribution from a mutual fund transferred into my Roth IRA, even though I'm not eligible to make a Roth contribution. What is the procedure for undoing this mistake?

[BPickerCPA]

Contact the custodian and tell them that you need to remove an erroneous contribution. You CANNOT recharacterize it back to a traditional IRA, you must remove it as well as any applicable income. Hopefully the custodian will compute that amount.

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Barry Picker, CPA/PFS, CFP

New York, NY

www.BPickerCPA.com