"Deodiaus" wrote:

- quote -

Did you qualify for a Roth contribution for 2008? If so, you can
"recharacterize" that contribution as a Roth contribution. See Pub 590.

--------------
Phil Marti, VITA Volunteer
Clarksburg, MD

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brew.one[at]gmail.com wrote:
- quote -

In the end, the $5K itself (not including earnings) will not be taxed
again, although depending on the other amounts in the IRA, it could take
a long time to get it all out. Each distribution includes some of your
basis prorated according to the ratio of non-deductible (basis) to total
amount in the overall IRA.

In 2010, under current tax law, you could convert the Traditional IRA
into a Roth without any income restrictions, subject to the same
pro-rated treatment.

Some folks have been deliberately making non-deductible IRA
contributions the last few years for this very reason.

-Mark Bole

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On Apr 17, 12:37*pm, Deodiaus <deodi...[at]yahoo.com> wrote:
- quote -

The simplest way to go is to file an 8606 for a contribution to a non-
deductible
IRA. That gives you a basis in your IRA, and so distributions will
not be
100% taxable.

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In a last minute rush, I deposited $5000 into a Traditional IRA before
filing my taxes As it turned out, my income is so high as not allow
any deductions on this money. Now, I guess this money will be taxed
when it is pulled out as well.
Is there any way to pull this money out without incurring any
additional taxes or penalties?

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >