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earnings are considered earned and received in the year the excess contribution was made. If you timely filed your 2018 tax return without withdraw- ing a contribution that you made in 2018, you can still have the contribution returned to you within 6 months of the due date of your 2018 tax return, excluding exten- sions. If you do, file an amended return with “Filed pur- suant to section 301.9100-2” written at the top. Report any related earnings on the amended return and include an explanation of the withdrawal. Make any other necessary changes on the amended return. Applying excess contributions. If contributions to your Roth IRA for a year were more than the limit, you can ap- ply the excess contribution in 1 year to a later year if the contributions for that later year are less than the maximum allowed for that year. Can You Move Amounts Into a Roth IRA? You may be able to convert amounts from either a tradi- tional, SEP, or SIMPLE IRA into a Roth IRA. You may be able to roll over amounts from a qualified retirement plan to a Roth IRA. You may be able to recharacterize contri- butions made to one IRA as having been made directly to a different IRA. You can roll amounts over from a designa- ted Roth account or from one Roth IRA to another Roth IRA. Conversions You can convert a traditional IRA to a Roth IRA. The con- version is treated as a rollover, regardless of the conver- sion method used. Most of the rules for rollovers, descri- bed in chapter 1 under Rollover From One IRA Into Another, apply to these rollovers. However, the 1-year waiting period doesn’t apply. Conversion methods. You can convert amounts from a traditional IRA to a Roth IRA in any of the following three ways. • Rollover. You can receive a distribution from a tradi- tional IRA and roll it over (contribute it) to a Roth IRA within 60 days after the distribution. • Trustee-to-trustee transfer. You can direct the trustee of the traditional IRA to transfer an amount from the traditional IRA to the trustee of the Roth IRA. • Same trustee transfer. If the trustee of the traditional IRA also maintains the Roth IRA, you can direct the trustee to transfer an amount from the traditional IRA to the Roth IRA. Worksheet 2-2. Example—Illustrated Before using this worksheet, check Table 2-1 to determine whether or not your Roth IRA contribution limit is reduced. If it is, use this worksheet to determine how much it is reduced. 1. Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, line 11) . . . . . . . . . . . . . . 1. 121,000 2. Enter: • $189,000 if filing a joint return or qualifying widow(er), • $-0- if married filing a separate return and you lived with your spouse at any time in 2018, or • $120,000 for all others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 120,000 3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 1,000 4. Enter: • $10,000 if filing a joint return or qualifying widow(er) or married filing a separate return and you lived with your spouse at any time during the year, or • $15,000 for all others . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 15,000 5. Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). If the result is 1.000 or more, enter 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 0.067 6. Enter the lesser of: • $5,500 ($6,500 if you are age 50 or older), or • Your taxable compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 5,500 7. Multiply line 5 by line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. 367 8. Subtract line 7 from line 6. Round the result up to the nearest $10. If the result is less than $200, enter $200 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 5,140 9. Enter contributions for the year to other IRAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 0 10. Subtract line 9 from line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 5,500 11. Enter the lesser of line 8 or line 10. This is your reduced Roth IRA contribution limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. 5,140 Page 44 Chapter 2 Roth IRAs