conversation: User (mike--): "This is the first year where mine and my wife's combined income will exceed the limit (most likely). I know about doing the traditional IRA and then converting it to a Roth later. But what happens to the contributions I have already made this year?  I have automatic transfers set up to occur once a week. \n\nEdit a word "
  Self: "I had to do this recently.  You need to take them out, you have until the next year to do it but if you already filed taxes for the year of the over contribution you will need to amend the return.\n\nYou have a few options, recharterize it.  This will have no fines/penalty but you will owe income tax on any gains.  You can move it to your traditional IRA, and then roll over that back to a Roth if you want.  Pull it out, but you will owe a penalty and tax on all the gains.\n\nThe longer you wait the more penalties the IRS will give you, but you have until October of the following year to get it straightened out before additional penalties apply.  The early withdraw penalty on the gains is unavoidable if you pull out the money, which is why recharacterizing is the best bet."
  