Personal Finance (Not Investing) • Double dipping in IRA contributions?

Hi,

I retired early (early 40s) last year and wasn't planning to have any "earned income" this year to be eligible to contribute to an IRA. However, an opportunity came up and I was able to teach a course at a UC for a quarter. I opted to contribute all of my paycheck (pre-tax) into the UC DCP and 457(b) plans (managed by Fidelity). Since none of that was taxed, I didn't expect to be able to contribute to an IRA. Once the quarter was over, the DCP plan had less than $1000 in it, so Fidelity sent me a check of the full amount (minus tax withholding). I promptly cashed the check and did an indirect rollover of the full pre-tax amount to a Roth IRA managed by Robinhood. The 475(b) plan had more than $2000 in it so it was left alone.

Am I allowed to contribute any more to my Roth IRA this year? Can I double-dip up to the disbursed amount? Before I received the check, I jumped the gun a bit and contributed to the Roth IRA. If I'm not allowed to do that, how do I request a return of contribution so that I don't get penalized by the IRS?

Thanks!

Statistics: Posted by hjpotter — Mon Sep 29, 2025 4:10 pm — Replies 0 — Views 12

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