Excess Contribution Correction Tool
Walk through the IRS correction process step by step and get the exact withdrawal amount using the official NIA formula from IRS Notice 2000-39.
IRA Contribution Limits
| Tax Year | Under 50 | Age 50+ |
|---|---|---|
| 2026 | $7,500 | $8,600 |
| 2025 | $7,000 | $8,000 |
| 2024 | $7,000 | $8,000 |
| 2023 | $6,500 | $7,500 |
| 2022 | $6,000 | $7,000 |
Combined limit across all Traditional and Roth IRAs. Source: IRS.gov
Roth IRA MAGI Phase-Out
| Year | Single / HoH | MFJ |
|---|---|---|
| 2026 | $153k–$168k | $242k–$252k |
| 2025 | $150k–$165k | $236k–$246k |
| 2024 | $146k–$161k | $230k–$240k |
| 2023 | $138k–$153k | $218k–$228k |
| 2022 | $129k–$144k | $204k–$214k |
If MAGI falls within the range, your limit is reduced proportionally. Above the upper limit, direct Roth contributions are not permitted.
Enter the total amount you deposited into this IRA for the tax year selected. If you contributed to both a Traditional and Roth IRA, enter the combined total — the IRS limit applies across both account types.
TurboTax, H&R Block, and most custodians will calculate this automatically. A MAGI calculator is coming soon to this site.
Your Modified Adjusted Gross Income (MAGI) for Roth IRA purposes is generally your AGI with certain deductions added back (student loan interest, tuition, etc.). See IRS Publication 590-A for the exact calculation.
The IRS doesn't just look at the money you contributed — it looks at how your entire IRA performed during the time the excess was in the account. If your account grew, a proportional share of those earnings is attributed to your excess contribution and must be withdrawn along with it.
This allocation method is called the Net Income Attributable (NIA) and is based on IRS Notice 2000-39 and Treasury Regulation 1.408-11. The NIA can be positive (your account gained value), zero, or negative (your account lost value). If NIA is zero or negative, you withdraw only the original excess — no additional amount is owed.
The IRS requires you to withdraw the excess contribution plus any earnings it generated. The earnings are called Net Income Attributable (NIA).
The IRS formula compares your account value when the excess was deposited (Adjusted Opening Balance) to its value just before you correct it (Adjusted Closing Balance). If the account lost money, NIA is negative — you still return the full excess, but no earnings are added.
The IRA's fair market value on the date the excess contribution was deposited, plus any contributions (including the excess) and minus any withdrawals made on or after that date. Use your account statement for the deposit date.
The IRA's fair market value immediately before the corrective withdrawal, plus any distributions, transfers, or recharacterizations taken from the account during the computation period. Use the most recent account statement.
You're one step away from your correction report
Based on your entries:
Your full report includes:
- ✓ Exact corrective withdrawal amount using the IRS NIA formula
- ✓ Step-by-step instructions for what to tell your custodian
- ✓ Which IRS forms to file and when
- ✓ Multi-year penalty exposure table (if applicable)
- ✓ Personalized PDF report to share with your custodian or accountant
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Education only — not individualized tax or legal advice. Results are based on the IRS NIA formula from Notice 2000-39.
| Excess contribution | — |
| Adjusted Opening Balance (AOB) | — |
| Adjusted Closing Balance (ACB) | — |
| Account gain / (loss) during period | — |
| NIA (net income attributable) | — |
| Corrective withdrawal = Excess + NIA | — |