Arthur Kamlet wrote:
- quote -

was alluding to in his post) when he mentioned the 10/15/08 date.
That Reg. spells out the procedure to be used by a taxpayer who
is making an election and wants to use the extra six months.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <yS5Jk.4256$yr3.3931[at]nlpi068.nbdc.sbc.com> ,
Alan <sfcnm-mtm[at]yahoo.com> wrote:
- quote -


The due day plus extensions?
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Gil Faver wrote:
[snip]
- quote -

recharacterize the nondeductible contribution to a Roth IRA.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <Eg3Jk.70020$Mh5.67653[at]bgtnsc04-news.ops.worldnet.att.net> ,
Gil Faver <rowdy'sboss[at]xxyz.com> wrote:
- quote -

Depends on your threshold for annoyance.

Having any nondeductible Traditional IRA contributions means
using and saving the last 8606. Speaking for myself,
after I've worked this for the first few hundred 8606s, it
becomes pretty routine and simple.
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ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Arthur Kamlet" <kamlet[at]panix.com> wrote in message
news:gd2etc$1jt$1[at]reader1.panix.com...
- quote -


Isn't the record keeping for having both deductible and nondeductible IRA
contributions in a traditional IRA a real PITA? Maybe makes more sense to
back out the nondeductible contribution.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <NHWIk.879$r_3.226[at]nwrddc02.gnilink.net> ,
Phil Marti <prm20871[at]verizon.net> wrote:
- quote -


Phil is right. A nondeductible IRA contribution is not limited by
AGI or even filing status. And it can be a nondeductible contribution,
and the form 8606 can be filed now if not already filed.

If it was deducted, amend the 2007 to remove the improper deduction.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Dick Adams" wrote:

- quote -

I'm confused by your choice of subject lines. Why were these contributions
incorrect and in need of fixing? Being covered by an employer plan doesn't
disqualify one from making IRA contributions. It may mean that a
traditional IRA contribution isn't deductible, depending on AGI.

Anyway, it's not too late to "undo" a 2007 contribution. That can be done
through 10/15/2008 regardless of whether or not the taxpayer got an
extension to file. Before doing so though, make sure that's a wise course
of action. If positive earnings are distributed (not likely) the 10%
penalty applies to the earnings.

Details are in Pub 590.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Taxpayer who is covered by an employer pension plan
(I believe it is either a 403B or a 401K) made
deposits in an IRA for 2007 and 2008. I believe
the 2008 deposit can be corrected by selling the
stock and reporting the gain or loss. But can
the 2007 deposit be corrected or does the taxpayer
have to wait until the distribution age to sell it
without paying an early distribution penalty.

My cousin who thinks I know taxation asked me this.
I told her I'd get back to her in a few days.

Dick

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >