 Put too much in ROTH, what tax consequences? |
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 Jan 15 2009, 10:27 AM
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#1
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Registered User Group: Registered Posts: 1 Joined: 15-January 09 Member No.: 28,477  |
I have a tax client who put too much in his Roth in 2008. His AGI is over the limits and him and his wife put in $4,800. I believe he said he was also over the limit in 2007. Of course it was not deductible, but what does he need to do now? Any consequences/penalties when I prepare his 2008 returns? Thanks.
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Jan 29 2009, 05:52 PM
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#2
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Registered User Group: Registered Posts: 127 Joined: 24-January 03 Member No.: 11,079 |
Makarov,
I am not sure of the answer, but I know Denise knows what should be done. I will leave her a note so that when she comes in she can respond, if you have not gotten a response by then. J |
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Jan 30 2009, 09:29 AM
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#3
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Registered User Group: Registered Posts: 626 Joined: 4-November 02 From: Denver Member No.: 10,658 |
Remove excess plus earnings by 2008 tax filing date plus extensions to avoid a 6% penalty tax for 2008 excess. 2007 excess is now subject to 6% penalty. Remove principal amount only & file form 5329 for 2007 excess. Contact the trustee/custodian for their forms and procedure.
-------------------- JEVD
AKA S-cubed |
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Jan 30 2009, 10:36 AM
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#4
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Moderator Group: Sitewide Moderator Posts: 1,021 Joined: 14-August 98 From: NC Member No.: 1,793 |
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Jan 30 2009, 12:47 PM
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#5
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Registered User Group: Registered Posts: 4 Joined: 12-January 09 Member No.: 28,456 |
Does anyone know of the IRS abating the Sec 4973 6% excise tax for excess contributions after due date of return? If so, what were the circumstances?
Thank you. |
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