tracking Roth IRA contributions

#4 04-11-2005, 09:08 PM

anoop wrote:
- quote -

> D. Stussy wrote:

> > You will receive a form 5398. It's not due until May 31.

[Actually, a typo: That should be 5498.]

- quote -

> The other thing that was bothering me about this was what
> happens if one gets audited, or one files an ammended return
> later in the year, and that adjusts the AGI upward so that
> one is no longer eligible for the original contributed
> amount.
> According to a representative at my brokerage firm, one
> would simply have to pay a 6% penality on the portion
> of that contribution that becomes non-eligible.
> I was wondering if someone can point me to something where
> I can verify this.

That is true. You just verified it.

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#3 04-07-2005, 07:33 AM

D. Stussy wrote:

- quote -

> You will receive a form 5398. It's not due until May 31.

The other thing that was bothering me about this was what
happens if one gets audited, or one files an ammended return
later in the year, and that adjusts the AGI upward so that
one is no longer eligible for the original contributed
amount.

According to a representative at my brokerage firm, one
would simply have to pay a 6% penality on the portion
of that contribution that becomes non-eligible.

I was wondering if someone can point me to something where
I can verify this.

Anoop

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#2 04-05-2005, 08:53 AM

anoop wrote:

- quote -

> How does the IRS track Roth contributions? It doesn't look
> like Roth contributions for a given year are entered on a
> tax return and I didn't receive anything from the custodian
> regarding this. What happens if someone's AGI is over the
> limit and they contribute more than they're supposed to?

You will receive a form 5398. It's not due until May 31.

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#1 04-01-2005, 07:47 AM

"anoop" <ghanwani[at]gmail.com> wrote:

- quote -

> How does the IRS track Roth contributions? It doesn't look
> like Roth contributions for a given year are entered on a
> tax return and I didn't receive anything from the custodian
> regarding this. What happens if someone's AGI is over the
> limit and they contribute more than they're supposed to?

All retirement plan contributions are reported by the
institutions that receive them.

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

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04-01-2005, 07:27 AM

"anoop" <ghanwani[at]gmail.com> wrote:

- quote -

> How does the IRS track Roth contributions?

Through Form 5498. Both you and the IRS should get a copy
in January and May.

--
Phil Marti
Clarksburg, MD

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#-1 03-30-2005, 12:27 AM

How does the IRS track Roth contributions? It doesn't look
like Roth contributions for a given year are entered on a
tax return and I didn't receive anything from the custodian
regarding this. What happens if someone's AGI is over the
limit and they contribute more than they're supposed to?

Anoop

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

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