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Re: Over-contributed to IRA's, now what?

I don't know how many "a few years ago" is, but maybe. 3? 4?

> > If you for any one year put 3k in each of them, then that > was too much.

I put $1500 each into them ( one traditional, one ROTH ). Yes, it was 4 years ago when I opened the accounts. Back then my Adjusted gross income was below the limits, but for the past two years it has gone above the limits. One simple solution would be to calculate how many shares I bought with the excess contributions, sell them and pay the

10% IRS early-withdrawl penalty? It may not be the 'correct' thing to do, but I think it seems honest and probably conservative?
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Reply to
oprah.chopra
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No such thing as trying to do something "conservatively"; only doing it the correct way. As I mentioned in my other reply you have an excise tax issue, so please seek some professional help. ChEAr$, Harlan Lunsford, EA n LA

Reply to
Harlan Lunsford

It may be simple, honest, and conservative, but it is not

*correct*. The law has specific explicit requirements for someone who makes excess contributions. You must satisfy those requirements. The longer you wait, the more expensive it will be, and the less likely you will be able to get penalties waived. See an appropriate professional _now_.

Seth

Reply to
Seth

Even after prodding you're not providing nearly enough information for intelligent advice. It's probably best if you go hire an Enrolled Agent or CPA to go through all the years in question and advise you. You could have anything from no problem to a large one. If you want help here, please provide the following:

  1. For each year in question: - The year - AGI - Filing status - Amount contributed to traditional IRA - Amount contributed to Roth IRA - Amount deducted as an IRA contribution - Figures from Part I of Form 8606, if you filed one
  2. If you are 50 or older, on what date did you turn 50?

-- Phil Marti Clarksburg, MD

Reply to
Phil Marti

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