I am under the gun from a time perspective and can't find an answer after doing some quick research. Client is in the Roth contribution phaseout. 2018 AGI is 192K. I know that if you have an excess Roth contribution the earnings on the excess are taxable in the year the contribution was made. So if the excess contributions were made in 2018 the earnings will be taxable in 2018. This will then change the AGI and change the excess contribution calculation. Can you exclude the earnings on the excess that are taxable in 2018 for purposes of calculating the excess so that it is not a circular calculation?
Thanks for any help you can provide!