RPG wrote:

- quote -

The IRS knows all. They know your AGI (actually MAGI, as
defined in Pub 590) from your filed 1040 return. They know
about your contribution from you IRA custodian, who files a
report directly to the IRS. The IRS puts the two together
......

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

me[at]privacy.net (RPG) posted:

- quote -

Maybe this will clear it up:

Your custodian will be sending out a statement on your Roth
IRA balance, which includes info on any contributions made
for the year. You will note the document includes a notice
that "Federal regulations require that we report fair market
value of IRAs to the IRS."

Of course the custodian doesn't care: they aren't at risk
-- only *you* are responsible for meeting the requirements
of tax law, in your own tax returns.

Bill

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

RPG <me[at]privacy.net> wrote:

- quote -

The IRS knows your AGI because you tell them.

They know the amount of Roth IRA contribution because the
IRA custodian must send them and you Form 5498 containing
the Roth contribution amount.

Now the hard part is to put those two pieces of information
together, but the IRS has the informaiton they need to do
that.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"RPG" <me[at]privacy.net> wrote:

- quote -

Contributions are reported to the IRS.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

RPG wrote:

- quote -

NOT to worry!. Not necessary to formally report anything
to anybody, much less the ROTH custodian. Noneofhisbusiness
anyway.

the only time you may need to prove anything is IF IRS
should ever raise the issue. So you'll keep your copy of
1040, right?

ChEAr$,
Harlan Lunsford, EA n LA
Fri, 14 Jan 2005

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

PG <me[at]privacy.net> wrote:

- quote -

The custodian doesn't care. You don't have to substantiate
to the custodian.

It's your responsibility to keep good enough records to
prove your eligibility to the IRS if they come questioning
your Roth. Nobody else will question it, AFAIK.

--
Chris Green

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

RPG <me[at]privacy.net> writes:

- quote -

You fill out your tax return and file it with the IRS. The
numbers on the tax return tell you and the IRS whether you
were eligible or not.

- quote -

It's not their job to know. It's your job to know. If it
turns out you made a contribution you shouldn't have, you
have until the due date of your return to undo the
ineligible contribution. Alternatively, since you have
until 15 April of year N+1 to make a year N contribution,
you could wait until you have all your year N data in,
complete your return, see where you stand, and then make
your year N contribution if allowed.

- quote -

Don't do that. They don't want it.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I am mystified by this. Supposedly I don't have to say
anything on my 1040 about contributing to a Roth, since the
contribution is post-tax income. But there is the matter of
the AGI limit! How and to whom do I establish that I am
eligible to contribute to a Roth? The IRA custodian didn't
ask, and in any case they don't know my AGI unless I give
them a copy of my 1040 (after I have done my taxes).

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->