IRA contributions are not updating
Here’s a summary of the user’s reported problem and the solutions discussed:
- Main Problem: The user maxed out their Roth IRA for 2024 while ineligible and requested a Return of Excess, but their Traditional IRA contribution tracker still shows the 2024 contributions maxed out.
- Solution 1: The contribution tracker will not update after a Return of Excess request, and the original contribution must still be reported for tax purposes.
- Solution 2: The user can still make future contributions to their Traditional IRA, but they should track their contributions manually to avoid exceeding the limit.
- Solution 3: If the user encounters issues making contributions online due to the tracker showing maxed contributions, they should contact Fidelity’s support team for assistance.
Here’s the full thread
Hi, I maxed out my Roth IRA for 2024 with $7000 while ineligible. I requested a Return of Excess for the 2024 amount and got those funds back in an Individual account. However when I navigate to my traditional IRA it still shows my 2024 contributions maxed out. How long will it take for this to clear out to $0 again?
Great question, @ulzzang. I can clarify.
Your contribution tracker will not update after a Return of Excess (ROE) request. While the IRS offers methods for fixing an excess contribution, the original contribution initially made to your Traditional IRA still took place and must be reported. Your contribution tracker on Fidelity.com and in our mobile app will not update based on your ROE request.
As some added insight, the initial contribution will be reported on Form 5498 for the year for which it was made. A Form 1099-R will also be provided for the year in which your ROE occurred. In other words, if you complete an ROE in 2024, you won’t receive a 1099-R until you receive your 2024 tax forms in the 2025 calendar year. Both the 5498 and 1099-R will need to be filed to show the IRS the complete picture.
Please let us know if you have additional questions or concerns. 🟢
Thanks for the help @FidelityCaitlin Will this prevent me from doing a backdoor IRA? Like can I still contribute to a traditional IRA in spite of the displayed “contributions” having reached the limit?
For clarification, the initial contribution was made to the Roth IRA, not a traditional one
Hi, @ulzzang. Happy to help out!
This will not prevent you from making future contributions. You’ll just need to be sure to keep track of your contributions on your own to ensure you don’t go over the limit. 🟢
Hi @FidelityMichaela thanks for the additional help. Unfortunately the UI is blocking me from transferring from my bank account to my Traditional IRA 😕 There is currently $0 in the Traditional IRA account, and it looks like the “IRA contributions” in this thread’s first image may be the culprit even if the $7000 mentioned was ROE’d from my Roth IRA account. Is there a workaround for this?
Thank you for following up with us, @ulzzang. I’m happy to help!
As the website’s tracker will not be updated, you’ll be unable to complete the contribution online. That said, you can contact our 24/7 support team for assistance with making your contribution. Our contact information is listed at the link below.
Contact Us: https://www.fidelity.com/customer-service/contact-us
Please let us know if you have additional questions. 🟢
Awesome, thanks! @FidelityHeather
Anytime, @ulzzang!
Feel free to stop by whenever you have questions. That’s what we’re here for! 🟢