nkaufman

It seems there could be a 10% penalty for earnings withdrawal ($0.10 on $1 earnings approx), So that shouldn't be that bad. Thanks for your assistance

Thanks, I'm asking them for details. It seems I need to withdraw funds from the account to my bank account (or open a non-retirement account and put the money in there) and then use the same funds to contribute for 2021. For 2020 Tax Return, it seems I do not have to do anything. Is that correct? For 2021 Tax Return, I might have to add the excess contribution and earnings (say $1) to my income. Need to find out what other penalty or fines there are for this. Thought there would be a simpler way since Contribution was done in 2021 for 2020 Tax Year. From this site: https://www.thebalance.com/what-to-do-if-you-contributed-too-much-to-your-roth-ira-3192888#citation-4 Move the Contribution to the Next Tax Year The IRS also lets you apply any contributions that are over the limit toward the following year. Let's say Robert has to withdraw $1,000 of his Roth IRA contributions because he's over the limit based on his income. He can simultaneously withdraw $1,000 from his contributions for tax year 2020 and contribute the same $1,000 for tax year 2021. The withdrawal and re-contribution are combined into one action. Simply instruct your IRA plan administrator that you're applying a certain contribution amount to the next tax year. The IRS says that you can apply the excess contribution in one year to a later year as long as the total contributions for that later year are less than the contribution limit for the year. ------------------------------------end of site content ---------------------------------- But the steps I'm being asked to follow ain't as simple 

Hello, Made a Roth IRA contribution in April 2021 for Tax Year 2020. Got an extension to file taxes. Found that I have made 1K contribution more than allowed. I thought Fidelity could just reduce the amount for 2020 by 1K and put 1K as contribution for 2021 as this is Roth IRA and contribution was made in 2021. But it seems that they cannot do it past filing deadline of May 31 this year. What is the best/easiest way to handle this? There seem to be a few ways here. Age less than 57 Thanks

Thanks for the clarification. I did some research and had found that i was incorrect. Now the goal is to make sure that he does not have any more Trad IRAs, Am surprised how many places he has retirement funds/accounts.. :-)

This is interesting. So, if one has no IRA whatsoever and cannot make a deductible IRA contribution then use the above strategy. Can this not be done only ONE time because in the next year, one will have this Roth IRA that was created the previous year? I'm told that he has a Roth IRA and another Trad IRA as well, I've asked him to go over his records and check..

Thanks for the advice, will keep that in mind..

Thanks for the suggestion. I asked and he is already filing 5500EZ. So that should be okay in this case.

Thanks for your comment. Not sure I understood what you meant by the above line. Also, are there any cons in merging the IRA with Keogh?

Hello, Helping someone who has a Traditional IRA at one company and has a Solo 401k plan with Fidelity (I think its called Keogh Plan but it is a self-employed 401k). He's trying to consolidate accounts at Fidelity who tells him that he can move assets from Traditional IRA to the Keogh Plan as the Keogh Plan is a Qualified Plan. Is that correct? Can he do that? What are the pros and cons of doing this? Thanks

Need to ask Vanguard/Fidelity if they'd allow me to open accounts using your plan and if so what fees would apply. Their plans with their prototype documents carry no fees/charges. Thanks,

Sure I understand that a better 401k trust document could do that. But in that case, how would I take that document to say Fidelity and Vanguard and ask them to open accounts? Right now, I'm inclined to go with templates that Fidelity and Vanguard already have in place in which case the only thing to know is if I need to file separate 5500-SF for both or just one for both of them. Thanks,

Hello, Have a sole prop, no employees and have a Individual 401k plan with Fidelity and fill up Form 5500-SF. If I open another 401k plan say with Vanguard, what are the issues that I should keep in mind? Of course, max contributions etc. remain across the plans. Does this mean I need to file 2 5500-SF or just 1? Thanks,