Advice on excess 2019 contributions to Roth IRA
Hello all.
As I was preparing my tax returns, I realized my 2019 AGI exceeds the IRS income limits for full contributions to a Roth IRA, which carries a 6% penalty for every year the excess along with its corresponding return are left in the account. From what I have read so far, it is my understanding that I can remove this excess before April 15 to avoid all penalties.
However, what is not so clear to me are the options I may have after removing the money from the IRA and potential consequences of each option, such as early-withdrawal penalties, additional tax liability, etc. It is also not clear to me how to calculate and segregate the earnings/losses attributable only to the contributions made within 2019.
Appreciate any advice I can get on this. Also, appreciate any referrals to a good CPA around the Tampa Bay area with whom I may be able to consult on this.
Thank you in advance. Look forward to this discussion.