|
#6
11-06-2005, 06:32 PM
| |||
| |||
 Re: Roth IRA - Capital Gains and Phase out contributions question... Thanks for the info! I should have read Pub 590 but did not realize the IRS had a pub specifically for IRA's..... << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
|
#5
10-27-2005, 06:44 AM
| |||
| |||
| Re: Roth IRA - Capital Gains and Phase out contributions question... "DSF" <df190765[at]hotmail.com> wrote: - quote - > Ok, maybe I am just not seeing something with the way the
You're supposed to withdraw the excess contributions.> IRS has their rules written for a Roth IRA. Lets say you > have contributed $4,000 to your Roth IRA by August 2005 thus > maxing out the contribution for tax year 2005. Then in > December 2005 you had a sale of an investment property > (rental home) and thus have a large capital gain that puts > you over the Roth IRA contribution phase out limits. > According to the IRS the Roth IRA phase out says: > "...The amount you may contribute to a Roth IRA is gradually > reduced if your modified adjusted gross income is between > $95,000 and $110,000 (between $150,000 and $160,000 if you > are married and file a joint return, and between $0 and > $10,000 if you are married, lived with your spouse and file > a separate return)...." > So what happens now? The IRA trustee will send the IRS info > about your contributions and then the IRS could/will see > that your MAGI will be at or above the phase out limits. Do > you have to withdraw the excess contribution(s) before April > 15th of next year? I guess maybe the other option is to > just take a penalty if it is not too great a hit on your > investment returns. -- Barry Margolin, barmar[at]alum.mit.edu Arlington, MA << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
|
#4
10-27-2005, 06:25 AM
| |||
| |||
| Re: Roth IRA - Capital Gains and Phase out contributions "DSF" <df190765[at]hotmail.com> wrote: - quote - > Ok, maybe I am just not seeing something with the way the
Yes.> IRS has their rules written for a Roth IRA. Lets say you > have contributed $4,000 to your Roth IRA by August 2005 thus > maxing out the contribution for tax year 2005. Then in > December 2005 you had a sale of an investment property > (rental home) and thus have a large capital gain that puts > you over the Roth IRA contribution phase out limits. > According to the IRS the Roth IRA phase out says: > "...The amount you may contribute to a Roth IRA is gradually > reduced if your modified adjusted gross income is between > $95,000 and $110,000 (between $150,000 and $160,000 if you > are married and file a joint return, and between $0 and > $10,000 if you are married, lived with your spouse and file > a separate return)...." > So what happens now? The IRA trustee will send the IRS info > about your contributions and then the IRS could/will see > that your MAGI will be at or above the phase out limits. Do > you have to withdraw the excess contribution(s) before April > 15th of next year? - quote - > I guess maybe the other option is to
It isn't a one time penalty. It's a recurring penalty until> just take a penalty if it is not too great a hit on your > investment returns. you remove the excess contribution. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
|
#3
10-27-2005, 06:25 AM
| |||
| |||
| Re: Roth IRA - Capital Gains and Phase out contributions question... "DSF" <df190765[at]hotmail.com> wrote: - quote - > Ok, maybe I am just not seeing something with the way the
You can either withdraw the excess contribution and the> IRS has their rules written for a Roth IRA. Lets say you > have contributed $4,000 to your Roth IRA by August 2005 thus > maxing out the contribution for tax year 2005. Then in > December 2005 you had a sale of an investment property > (rental home) and thus have a large capital gain that puts > you over the Roth IRA contribution phase out limits. earnings on it or "recharacterize" it as a traditional IRA contribution. Details are in IRS Publication 590. -- Phil Marti Clarksburg, MD << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
|
#2
10-26-2005, 04:53 AM
| |||
| |||
| Re: Roth IRA - Capital Gains and Phase out contributions question... "DSF" <df190765[at]hotmail.com> wrote: - quote - > Ok, maybe I am just not seeing something with the way the
You're supposed to withdraw the excess contributions.> IRS has their rules written for a Roth IRA. Lets say you > have contributed $4,000 to your Roth IRA by August 2005 thus > maxing out the contribution for tax year 2005. Then in > December 2005 you had a sale of an investment property > (rental home) and thus have a large capital gain that puts > you over the Roth IRA contribution phase out limits. > According to the IRS the Roth IRA phase out says: > "...The amount you may contribute to a Roth IRA is gradually > reduced if your modified adjusted gross income is between > $95,000 and $110,000 (between $150,000 and $160,000 if you > are married and file a joint return, and between $0 and > $10,000 if you are married, lived with your spouse and file > a separate return)...." > So what happens now? The IRA trustee will send the IRS info > about your contributions and then the IRS could/will see > that your MAGI will be at or above the phase out limits. Do > you have to withdraw the excess contribution(s) before April > 15th of next year? I guess maybe the other option is to > just take a penalty if it is not too great a hit on your > investment returns. -- Barry Margolin, barmar[at]alum.mit.edu Arlington, MA << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
|
#1
10-26-2005, 04:34 AM
| |||
| |||
| Re: Roth IRA - Capital Gains and Phase out contributions "DSF" <df190765[at]hotmail.com> wrote: - quote - > Ok, maybe I am just not seeing something with the way the
Yes.> IRS has their rules written for a Roth IRA. Lets say you > have contributed $4,000 to your Roth IRA by August 2005 thus > maxing out the contribution for tax year 2005. Then in > December 2005 you had a sale of an investment property > (rental home) and thus have a large capital gain that puts > you over the Roth IRA contribution phase out limits. > According to the IRS the Roth IRA phase out says: > "...The amount you may contribute to a Roth IRA is gradually > reduced if your modified adjusted gross income is between > $95,000 and $110,000 (between $150,000 and $160,000 if you > are married and file a joint return, and between $0 and > $10,000 if you are married, lived with your spouse and file > a separate return)...." > So what happens now? The IRA trustee will send the IRS info > about your contributions and then the IRS could/will see > that your MAGI will be at or above the phase out limits. Do > you have to withdraw the excess contribution(s) before April > 15th of next year? - quote - > I guess maybe the other option is to
It isn't a one time penalty. It's a recurring penalty until> just take a penalty if it is not too great a hit on your > investment returns. you remove the excess contribution. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
|
10-26-2005, 04:34 AM
| |||
| |||
| Re: Roth IRA - Capital Gains and Phase out contributions question... "DSF" <df190765[at]hotmail.com> wrote: - quote - > Ok, maybe I am just not seeing something with the way the
You can either withdraw the excess contribution and the> IRS has their rules written for a Roth IRA. Lets say you > have contributed $4,000 to your Roth IRA by August 2005 thus > maxing out the contribution for tax year 2005. Then in > December 2005 you had a sale of an investment property > (rental home) and thus have a large capital gain that puts > you over the Roth IRA contribution phase out limits. earnings on it or "recharacterize" it as a traditional IRA contribution. Details are in IRS Publication 590. -- Phil Marti Clarksburg, MD << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
|
#-1
10-24-2005, 04:23 AM
| |||
| |||
| Roth IRA - Capital Gains and Phase out contributions question... Ok, maybe I am just not seeing something with the way the IRS has their rules written for a Roth IRA. Lets say you have contributed $4,000 to your Roth IRA by August 2005 thus maxing out the contribution for tax year 2005. Then in December 2005 you had a sale of an investment property (rental home) and thus have a large capital gain that puts you over the Roth IRA contribution phase out limits. According to the IRS the Roth IRA phase out says: "...The amount you may contribute to a Roth IRA is gradually reduced if your modified adjusted gross income is between $95,000 and $110,000 (between $150,000 and $160,000 if you are married and file a joint return, and between $0 and $10,000 if you are married, lived with your spouse and file a separate return)...." So what happens now? The IRA trustee will send the IRS info about your contributions and then the IRS could/will see that your MAGI will be at or above the phase out limits. Do you have to withdraw the excess contribution(s) before April 15th of next year? I guess maybe the other option is to just take a penalty if it is not too great a hit on your investment returns. Thanks! << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
| Tags |
| capital, contributions, gains, ira, phase, question, roth |
Similar Threads | ||||
| Thread | Forum | Replies | Last Post | |
| capital gains question jbeck695@gmail.com: scenario: bought house in 1995 for 86k, lived there for 1 year & have been renting since. current value is 175k depreciated 8k so my question... | Taxes | 1 | 04-12-2005 07:38 PM | |
| California Tax Capital Gains Question Eric Cantona: Hi - I have the following situtaion was hoping to get some input: I reside in California with my wife and have for the last three years. Within... | Taxes | 2 | 11-14-2004 04:41 PM | |
| New 15% Capital Gains Rate after 5/5/03 question sk43: I sold my rental property about a month before the capital gains rate dropped to 15% on May 6, 2003. Is there any way or circumstances under which... | Taxes | 6 | 05-27-2004 04:25 AM | |
| Capital Gains/Losses Question Douglas Harrington: I have been referred to this group from misc.invest.stocks... I am 15 years old and opened a brokerage account with my mother as custodian. I... | Taxes | 8 | 05-03-2004 07:59 AM | |
| Capital Gains -- estimated tax question Carolyn: I was browsing through earlier replies and it appears the consensus is -- if you have a one time capital gain during the year, you have to either... | Taxes | 4 | 05-03-2004 07:59 AM | |
| Thread Tools | |
| Display Modes | |
| |
Linear Mode
