> Before the March 15th, 2008 deadline, I transferred money to my online
>> brokerage to max out my 2007 contributions to my Roth IRA. However, I
>> accidentally transferred too much ( I did a transfer twice ). I called
>> my broker before the 15th, and the operator said they would take care
>> of it. I got the money back.
>
> Since you had already made the investment, why didn't you have the second
> amount recharacterized to be your 2008 contribution? There was no reason > to
> withdraw it (unless you know that you won't qualify to contribute in > 2008).
> No penalty. No 1099-R/5498 coding mess.
Since "recharacterize" is a term of art in IRA law and doesn't apply to this situation, a clarification.
When I make an IRA contribution I have to specify the tax year it's for. I have heard that some custodians will accommodate the taxpayer in cases like OP's and change the contribution year after the fact, but I know of nothing that requires them to (and I'm not sure they're allowed to).