Net Income Attributable Calculation

The net income attributable calculation can help you fix and avoid the 6% Roth IRA excess contribution penalty.

You have until the October 15th tax filing deadline, regardless if you filed an extension or not.  In fact, if you realized you overcontributed after you filed your taxes but it's still before the October 15th tax filing deadline then you can fix it and file an amendment.

Unfortunately, this method will not work if you are past the October 15th tax filing deadline and you will then have to pay the 6% penalty on the excess contribution.  However, the 6% penalty is only on the excess contribution and NOT on the net income attributable.

You will have the 6% penalty every year until you fix the excess Roth contribution or the amount is absorbed.  This means, you were eligible to make a Roth IRA contribution the following year and the excess was under that amount.  You read more about the excess contribution here.

Download the above net income attributable worksheet to correct your Roth IRA over contributions.

Use the video to learn more about Roth IRA 6% penalty and how you can avoid and fix them.

A complete walkthrough and additional resources are on this page for other methods of fixing the Roth IRA excess contribution.