IRA rules limit contributions to 5 or 6 thousand per year. Anything in excess does not have to be undone. However, the excess is subject to a 6% IRS penalty. In Michigan, the excess contributed to an IRA (Section 408 of the Revenue Code) is not exemptable under (d)(12). However, the excess contributed to a Roth IRA (Section 408A of the Revenue Code) is. A rollover from a 401(k), 403(b) or 457 tax deferred account, which, if done properly, should have no effect on the timing of 13 filing. Section 522(b)(3) says that money that is in a fund or account that is exempt from taxation under various sections, including section 408A, is exempt. A penalty is not a tax any more than interest is. Also, I think the key language is a “fund or account” that is exempt from taxation. If the 6% penalty is a tax then no funds in any such account would be exemptable, even without an over-contribution. That would be a ridiculous construction so I think the 408A account is not subject to taxation but is subject to penalty.