Roth IRA Excess Contribution Penalties and How to Fix Them

Episode 39 of Roth IRA with Fexingo dives into a costly mistake that catches many savers off guard: contributing more than the annual limit to a Roth IRA. Lucas and Luna walk through the IRS penalty structure—six percent per year until corrected—and the three fix methods: a return of excess, carry-forward to next year, or recharacterization to a traditional IRA. They use a concrete example of someone who contributed $8,000 in 2026 when the limit was $7,500, and show how a $500 overage could snowball into a $60 annual penalty if left alone. The episode also covers common triggers like multiple IRAs, mid-year income spikes, and the two-month grace period for the tax filing deadline. Practical, penalty-avoiding advice without the jargon. #RothIRA #ExcessContributions #IRSpenalties #RetirementSavings #TaxFixes #Overcontribution #IRArules #PenaltyAvoidance #ContributionLimits #TaxSeason #RothIRAFixes #FinancialPlanning #PersonalFinance #Investing #RetirementPlanning #FexingoBusiness #BusinessPodcast #Finance Keep every episode free: buymeacoffee.com/fexingo