Roth IRA Credited For Wrong Year

[Guest arasalin]

Last year, I made my Roth IRA contribution in a new brokerage account at Fidelity, with the intention of contributing for 2005. The bank tells me that they believe the check was dated April 18, 2006, which I disagree with based on my handwriting, and also based on the fact that I was aware that the deadline was April 17, 2006 and would have done my contribution in person at my bank.

Nevertheless, they have characterized it as a 2006 contribution, which means I have no 2005 contribution, and they refuse to change the date even after I have appealed. Is there anything I can do to make a contribution for the year I have now skipped?

[Guest mjb]

1. How did you make your deposiit? Did you mail it in ,deposit it in person or transfer funds electronically?

2. If mailed was it postmarked on Apr 17?

3. What is the date on your check showing it was deposited by the custodian?

4. Why does the bank think the date of the check on Apr 18 is important?

[John G]

MJB has posted good questions. I have one more:

1. Who are you talking with at Fidelity - the first person who answers the phone or the back office specialists for Roth/IRAs? The general staff probably do not have the tools to correct this problem. The special Roth/IRA dpt. may.

While you throw the problem at Fidelity, you contributed to this mess. First, you apparently waited to the last minute to make the contribution. Second, you apparently never tracked the execution/posting in your statements. If you had attempted to correct the problem sooner, you might have had more success. Third, you should have specified the contribution year on your check - which would have strengthened your case as to your intentions.

ALERT - This post will be read by many readers, and there are some good lessons. Don't wait to the crush of April or year end to do transactions. Check your statement. Make sure you designate the account # and contribution year on your check.

[Guest arasalin]

I have been fighting with Fidelity forever.

1. The check is dated April 14, 2006, and it is clearly marked as a 2005 contribution. I mailed it in definitely postmarked on April 14, though Fidelity admits that they did not deposit it until April 24, which matches up with the custodian's records.

2. I spoke with the customer service people, and at this point, I have gone through the chain of everyone in that department, who have all insisted that it is too late for me to correct this problem.

3. The same customer service folk insist that the payment was not received until April 18 -- in 2006, April 17 was the last day to make a contribution. The have conceded that the late deposit may have been a problem on their end.

4. They also insist that the account was not open early enough.

The best I could do to remedy the situation, given the absolute refusal of Fidelity to correct their error was to make my 2007 contribution early, and to remember not to leave the Roth contribution to the last minute. I would welcome any suggestions, but I have serious doubts that anyone at Fidelity will be remotely helpful. I have spent hours finding out the opposite is true.

Thanks again.

[John G]

On what date was this account opened?