I got married last year and my wife and I exceed the income limit for Roth contributions (full limit not just phase out limits). We both need to pull money out of our Roths for 2023 and fortunately for her, the platform she uses calculates that amount for her. Mine unfortunately doesn't and said I am responsible for calculating. I've looked up some stuff online and found a formula that helps me calculate: excess contribution X (adjusted closing - adjusted opening)/adjusted opening
(If that doesn't seem right let me know)
My two questions: 1) I put $7000 in my Roth at the beginning of the year. This is netted out of the adjusted closing balance correct?
2) The video I watched said to calculate the closing balance as of the day of withdrawal, but it takes time for my broker to make that change. So in an ever changing market with my broker wanting me to calculate on my own versus a computer doing it for me, how am I supposed to calculate a closing balance when it's a moving target? For example, I can enter my closing balance on Monday when I'm requesting the withdrawal, but if my broker withdraws it on Tuesday, that's going to be inaccurate unless the IRS doesn't care about that difference.
Any other advice is appreciated as we are new to filing jointly and this is the first time we've both been over the Roth limit.
original posted by esu418 to r/personalfinance on Sun, 03 Mar 2024 13:24:16 GMT.