Over the Roth IRA Income Limit? Here's What to Do Now

You did the responsible thing. Early in the year, you maxed out your Roth IRA, all $7,500 of it. Then a raise showed up, or a bonus landed, or your spouse started a new job, and now your income puts you over the Roth IRA income limit for 2026.

This trips up more people than you'd think, especially the first year it happens to them. It's fixable, and it's nowhere near as scary as the letter from the IRS you're picturing in your head right now. Here's what actually happens when you cross the line, and exactly what to do about the money that's already in the account.

What the 2026 Roth IRA income limit actually is

The Roth IRA doesn't have a hard cutoff. It has a phase-out range instead, based on your modified adjusted gross income, or MAGI.

For 2026, single filers phase out between $153,000 and $168,000. Land inside that range and you can still contribute, just a reduced amount. Land above it? The door to a direct contribution closes for the year.

Married filing jointly, the range is $242,000 to $252,000, a household number. A spouse's raise counts just as much as your own.

So where does that leave you? Pull your MAGI estimate from your tax software or last year's return, then adjust for this year's raise, bonus, or new dual income. That number tells you exactly which zone you're in.

What happens if you already contributed and now you're over

Here's the thing: contributing when you're over the limit doesn't trigger some automatic red flag. Your custodian doesn't check your income in real time. Fidelity or Schwab will happily let that $7,500 sit there, no questions asked.

The problem shows up later, when the IRS calls it an excess contribution. And excess contributions carry a 6% excise tax, charged every single year the money stays in the account past the correction deadline.

On a full $7,500 contribution, that's $450 a year. Every year, until you fix it.

I've seen this trip up clients almost exactly this way. They max their Roth in January like clockwork, then a November bonus pushes their income $10,000 past the ceiling and they don't find out until they're doing taxes in April. That's not a rare situation. It's the most common way people end up in this spot.

How to fix an excess Roth IRA contribution

You have three real options here, and two of them cost you nothing extra if you move fast.

Withdraw the excess contribution plus any earnings it generated before your tax filing deadline, including extensions, and you avoid the 6% excise tax entirely.
Recharacterize the contribution as a traditional IRA contribution instead, before that same deadline, and the excess problem disappears along with it.
Leave it in place and pay the 6% excise tax every year until you eventually withdraw the excess amount, which is the option nobody should pick on purpose.

Call your custodian and ask for a "return of excess contribution." They'll calculate the earnings attributable to it using an IRS formula, and you'll owe ordinary income tax on those earnings for the year you contributed. If you're under 59 and a half, expect a 10% early withdrawal penalty on just the earnings, not the full amount you put in.

Missed the deadline already? You can still fix it. You just can't avoid the 6% tax for the year or years it sat there uncorrected.

What to do differently going forward

Once you're over the Roth IRA income limit, the front door closes for good, at least at your current income. That doesn't mean you're locked out of Roth money entirely.

This is where a backdoor Roth IRA comes in. You contribute to a traditional IRA with after-tax dollars, then convert it to Roth. No income limit applies to the conversion step, only to direct contributions.

One catch. If you already have pre-tax traditional IRA money sitting around from an old rollover, the pro-rata rule makes the backdoor Roth messier than a clean conversion. Worth understanding before you start moving money.

And if a Roth IRA isn't realistic this year, don't overlook your 401(k). Most plans offer a Roth option with no income limit attached at all, and how you choose between Roth and traditional accounts is worth revisiting once your income crosses this threshold for good.

Every year is its own window. Miss it, fix the excess, and set up the right account for next year instead of leaving the same mistake to repeat itself.

If you want help figuring out whether a backdoor Roth makes sense for your specific situation, or you just found out about an excess contribution and want a second set of eyes, that's exactly what we help with. Schedule a free intro call and we'll take a look at your full picture.

Frequently Asked Questions

What is the Roth IRA income limit for 2026?

For 2026, the Roth IRA phase-out range is $153,000 to $168,000 for single filers and $242,000 to $252,000 for married couples filing jointly. Inside that range, you can contribute a reduced amount. Above it, you can't contribute directly at all, though a backdoor Roth IRA is still available.

What happens if I contribute to a Roth IRA over the income limit?

The contribution becomes an excess contribution, and the IRS charges a 6% excise tax on it for every year it stays in the account past the correction deadline. On a full $7,500 contribution, that's $450 a year until it's fixed. Your custodian won't stop the transaction automatically, so it's on you to catch it.

How do I fix an excess Roth IRA contribution?

Contact your custodian and request a return of excess contribution, or ask to recharacterize the contribution as a traditional IRA contribution, before your tax filing deadline including extensions. Either option, done on time, avoids the 6% excise tax completely. Any earnings the excess generated are taxable in the year you contributed.

What is the deadline to remove an excess Roth IRA contribution?

You generally have until your tax filing deadline, including extensions, for the year you made the contribution. That usually means October 15 of the following year if you filed an extension. Miss it and you'll owe the 6% excise tax for at least one year before you can correct it.

Can I still contribute to a Roth account if I'm over the income limit?

Not directly, but a backdoor Roth IRA lets you contribute to a traditional IRA with after-tax dollars and convert it to Roth, since the conversion step has no income limit. Your 401(k)'s Roth option, if your employer offers one, also has no income limit. Both are worth setting up once your income crosses the threshold for good.

Disclosure: This article is for educational purposes only and does not constitute personalized investment, tax, or legal advice. Individual situations vary. Please consult a qualified financial professional before making financial decisions. Villaire Financial, LLC is a registered investment adviser. Schedule a free intro call if you'd like to talk through your specific situation.