I recently opened a Roth IRA account for myself. I had a brief tech support snafu when setting up online access, apparently because my information was already in the system. Unbeknownst to me, my grandparents started an account in my name and have been making contributions for the past 5 years or so, including USD 2000 this past May. Since I made the maximum contribution of USD 5,500 when I "started" the account a few weeks ago, I'm now 2,000 over the maximum yearly contribution. I know I need to correct this--and would obviously like to do so with minimum penalties. My understanding is that I can have the excess amount returned to my bank account with no penalty, so long as I do so by October 15th. Is there anything else I need to do that I'm missing? As long as I correct the error by the deadline, will this complicate filing my taxes in April? More broadly, is there any way to prevent this from happening in the future (other than talking to my grandparents and making sure we communicate better in the future)?
Submitted July 05, 2018 at 09:40AM by heythereanydaythere https://ift.tt/2u8EiPx
