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Year(s) Contribution limit Contribution limit if age 50 or older at the end of the year 2013 through 2018 $5,500 $6,500 2008 through 2012 $5,000 $6,000 2006 or 2007 $4,000 $5,000 2005 $4,000 $4,500 2002 through 2004 $3,000 $3,500 1997 through 2001 $2,000 — before 1997 $2,250 — Excess due to incorrect rollover information. If an ex- cess contribution in your traditional IRA is the result of a rollover and the excess occurred because the information the plan was required to give you was incorrect, you can withdraw the excess contribution. The limits mentioned above are increased by the amount of the excess that is due to the incorrect information. You will have to amend your return for the year in which the excess occurred to correct the reporting of the rollover amounts in that year. Don’t include in your gross income the part of the excess contribution caused by the incorrect information. Deducting an Excess Contribution in a Later Year You can’t apply an excess contribution to an earlier year even if you contributed less than the maximum amount al- lowable for the earlier year. However, you may be able to apply it to a later year if the contributions for that later year are less than the maximum allowed for that year. You can deduct excess contributions for previous years that are still in your traditional IRA. The amount you can deduct this year is the lesser of the following two amounts. • Your maximum IRA deduction for this year minus any amounts contributed to your traditional IRAs for this year. • The total excess contributions in your IRAs at the be- ginning of this year. This method lets you avoid making a withdrawal. It doesn’t, however, let you avoid the 6% tax on any excess contributions remaining at the end of a tax year. To figure the amount of excess contributions for previ- ous years that you can deduct this year, see Worksheet 1-5. Excess Contributions Deductible This Year Use this worksheet to figure the amount of excess contributions from prior years you can deduct this year. 1. Maximum IRA deduction for the current year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. IRA contributions for the current year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. Subtract line 2 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 4. Excess contributions in IRA at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Enter the lesser of line 3 or line 4. This is the amount of excess contributions for previous years that you can deduct this year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Example. Teri was entitled to contribute to her tradi- tional IRA and deduct $1,000 in 2017 and $1,500 in 2018 (the amounts of her taxable compensation for these years). For 2017, she actually contributed $1,400 but could deduct only $1,000. In 2017, $400 is an excess con- tribution subject to the 6% tax. However, she wouldn’t have to pay the 6% tax if she withdrew the excess (includ- ing any earnings) before the due date of her 2017 return. Because Teri didn’t withdraw the excess, she owes excise tax of $24 for 2017. To avoid the excise tax for 2018, she can correct the $400 excess amount from 2017 in 2018 if her actual contributions are only $1,100 for 2018 (the al- lowable deductible contribution of $1,500 minus the $400 excess from 2017 she wants to treat as a deductible con- tribution in 2018). Teri can deduct $1,500 in 2018 (the $1,100 actually contributed plus the $400 excess contri- bution from 2017). This is shown on Worksheet 1-5. Ex- ample—Illustrated. Worksheet 1-5. Example—Illustrated Use this worksheet to figure the amount of excess contributions from prior years you can deduct this year. 1. Maximum IRA deduction for the current year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 1,500 2. IRA contributions for the current year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 1,100 3. Subtract line 2 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 400 4. Excess contributions in IRA at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 400 5. Enter the lesser of line 3 or line 4. This is the amount of excess contributions for previous years that you can deduct this year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 400 Worksheet 1-5. Page 36 Chapter 1 Traditional IRAs