How Roth IRA Excess Contribution Penalties Can Be Fixed

Episode 41 of Roth IRA with Fexingo dives into the specific rules for handling excess contributions in a Roth IRA — a surprisingly common mistake. Lucas and Luna walk through a concrete scenario: a listener who accidentally contributed $1,500 over the limit in 2025, and the options available by the tax filing deadline and beyond. They explain the 6 percent annual penalty, the difference between removing excess contributions versus recharacterizing to a Traditional IRA, and what happens if you miss the deadline entirely. The conversation also touches on how the IRS calculates earnings on excess amounts, and why even a small overcontribution can compound into a bigger headache. Practical, numbers-driven advice for anyone who has ever wondered what happens if they put in too much. #RothIRA #ExcessContributions #IRAPenalties #TaxFilingDeadline #IRS #RetirementPlanning #ContributionLimits #Recharacterization #Finance #FexingoBusiness #BusinessPodcast #WealthManagement #TaxStrategy #IRA #FinancialPlanning #InvestmentMistakes #CompoundPenalties #EarningsCalculation Keep every episode free: buymeacoffee.com/fexingo