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#1
04-15-2006, 06:28 AM
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 Re: Question regarding penalty associated with excess Roth IRA contribution "morrie" <morrie.bradshaw[at]gmail.com> writes: - quote - > I had a question regarding contributing to our roth IRA --
Keep in mind that it's not a 1-year penalty. The penalty> Our combined income is over the $150k limit and our max > contribution is only limited to $2k. I'm wondering if we > can take a penalty and still contribute the full amount into > our Roth IRA. continues each and every year until the excess contribution is withdrawn or resolved. So you'll pay a $120 penalty (6% of the $2000 excess) each year. -- Rich Carreiro rlcarr[at]animato.arlington.ma.us << ================================================== ===== > << 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 (2006) - All rights reserved. > << ================================================== ===== > |
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04-15-2006, 06:08 AM
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| Re: Question regarding penalty associated with excess Roth IRA contribution "morrie" <morrie.bradshaw[at]gmail.com> wrote: - quote - > Our combined income is over the $150k limit and our max
The 6% penalty is annual, not one time. It means that for> contribution is only limited to $2k. I'm wondering if we > can take a penalty and still contribute the full amount into > our Roth IRA. > What are some of the implications and consequences for doing > so? It seems like it would make sense to pay that penalty > to add the extra $2k into each of our accounts. the life of the investment, the first 6% of earnings goes to Sam. Kinda like having to make book at a bridge table. -- 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 (2006) - All rights reserved. > << ================================================== ===== > |
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#-1
04-14-2006, 07:45 AM
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| Question regarding penalty associated with excess Roth IRA contribution I had a question regarding contributing to our roth IRA -- Our combined income is over the $150k limit and our max contribution is only limited to $2k. I'm wondering if we can take a penalty and still contribute the full amount into our Roth IRA. What are some of the implications and consequences for doing so? It seems like it would make sense to pay that penalty to add the extra $2k into each of our accounts. Any thoughts is greatly appreciated. Thanks in adv. << ================================================== ===== > << 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 (2006) - All rights reserved. > << ================================================== ===== > |
| Tags |
| contribution, excess, ira, penalty, question, roth |
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