How can I remove excess contributions from my IRA?

Contact us at support@carboncollective.co to help your remove excess contributions from your retirement account.

Each year, there is a maximum amount of money you are allowed to contribute to your IRAs because they are tax-advantaged accounts. This amount is the total you can contribute to all Traditional and Roth IRA accounts you have open.

The maximums over the years have trended toward increasing.

2021 - $6.000

2022 - $6,000

2023 - $6,500

2024 - $7,000

This means if you have both a Traditional and Roth IRA, their combined contributed balances cannot be more than the maximum, or $7,000 in 2024. 

 

If you have auto deposits set up or are just not familiar with the maximum contribution rules, it can be easy to over-contribute. It’s important to remove these extra funds to avoid penalties from over-contributing. 

If your funds have been invested, we’ll need to liquidate the contribution along with any gains you’ve received. Please contact us at support@carboncollective.co if you’d like to remove excess contributions, so we can calculate the amount you need removed.


Generally, we will send you a DocuSign and submit this to Altruist in order to process the removal. The process takes about 3-4 business days or a week.

Please don't hesitate to reach out to the team if you think you may may need to make an withdrawal of your excess contributions!

 

How can I check how much I've contributed?

Unfortunately, Altruist doesn't have a super simple way to look at your total year's contributions yet. Good news - this is a feature they're working on implementing!


For now, you can check how much you've deposited over the year by following a few steps:

  1. Log into Altruist
  2. Go to Activity and if you have more than one account, change "All Advisor Managed Accounts to your IRA account you'd like to look at
  3. Filter by at least the past year and by "Deposit"
  4. Add up the deposit amounts (You may want to click the download arrow in the top corner to add up everything in a spreadsheet.)

If something doesn't look right or if you have any questions, feel free to message us at support@carboncollective.co, and we can help you calculate your total deposit amount.