# Roth IRA (unintentional) over contributions in the years I've lived abroad



## KVH (9 mo ago)

I'm a US citizen living in Finland for almost 5 years now. I've continued to contribute to my Roth IRA minimally since moving, and for 2020 and 2021 maxed out my contributions – only to discover that this is not something I'm allowed to do, because my income is about 25k USD annually.

Does this mean I need to withdraw my contributions from the past two years (By contacting vanguard?) (And then correct last year's return?)

I've combed previous threads but feel unclear on what the right move is here...


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## KVH (9 mo ago)

Do I have to pull out everything from the past years, or do you think just for 2021? And then wait and see...


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## Bevdeforges (Nov 16, 2007)

There are a couple of alternatives, if I understand these things correctly. Another option would be to amend your returns in all years where you made a Roth contribution from overseas and pony up the US taxes (and interest on the late payments) on your "earned income" (which I gather you "excluded" using the FEIE). Roth contributions are supposed to be made from after-tax earned income only. And there is a 6% penalty for however long the excess contribution remains in the Roth.

For details, see here: Retirement Topics - IRA Contribution Limits | Internal Revenue Service


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