Guest snowandh2o Posted December 6, 2004 Posted December 6, 2004 Due to a few mess ups, I have over-contributed to my Roth IRA, and not by a tiny bit. Instead of 3000 for 2004, I have put in 5000. 3000 is my legal limit. What can I do now?
mbozek Posted December 6, 2004 Posted December 6, 2004 Look in IRS publication 590, P 57 available at irs.gov. mjb
John G Posted December 7, 2004 Posted December 7, 2004 All 5K in one account at one custodian? Someone should have caught that. Call your custodian immediately and ask for the IRA department. There are proceedures for correcting the problem and it is still timely. You will probably need to draft a letter explaining what you did and ask them to calculate the earnings of the over contribution. Note, $3500 is your legal limit if you are over the age of 50.
Appleby Posted December 7, 2004 Posted December 7, 2004 You need to remove the excess amount, including any earnings or less any loss. Some custodians will assist with calculating the earnings/loss, some will not. If you need assistance with calculating the earnings see the article at http://www.taxopedia.com/articles/retirement/04/042804.asp Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com
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