JCRBD
Jun 7 2000, 05:33 PM
What happens is after you have $2,000 in a Roth IRA account your AGI for that tax year exceeds $160,000
Michael Devault
Jun 8 2000, 08:48 AM
The contribution in this case would be considered an excess contribution. The excess contribution and it's earnings needs to be withdrawn on or before the due date (including extensions) for filing your income tax return.
If not withdrawn, a 6% excise tax applies to the excess contribution.
Hope this helps. Good luck!