Married Filing Separately

[Guest BSR]

What is the IRS rationale for only allowing Roth contributions if you file your federal tax return jointly when you are married (versus married filing separately)?

My husband and I each made a contribution for the year 2000 but now must take them out because we filed married filing separately. Is the penalty only a 6% excess tax penalty ($4,000 x 6% = $240) or do we have to pay a 10% penalty on top of that? If yes, is that 10% on the $4,000 or on the income earned on that $4,000 thus far?

[BPickerCPA]

The rule is set out by Congress, not the IRS. Whether there is a rationale for it is not relevant, that's the rule.

The penalty is 6% of the amount not timely withdrawn. The 10% penalty is on the earnings, not the amount put it.