Guest Makarov Posted January 15, 2009 Posted January 15, 2009 I have a tax client who put too much in his Roth in 2008. His AGI is over the limits and him and his wife put in $4,800. I believe he said he was also over the limit in 2007. Of course it was not deductible, but what does he need to do now? Any consequences/penalties when I prepare his 2008 returns? Thanks.
jane123 Posted January 29, 2009 Posted January 29, 2009 Makarov, I am not sure of the answer, but I know Denise knows what should be done. I will leave her a note so that when she comes in she can respond, if you have not gotten a response by then. J
jevd Posted January 30, 2009 Posted January 30, 2009 Remove excess plus earnings by 2008 tax filing date plus extensions to avoid a 6% penalty tax for 2008 excess. 2007 excess is now subject to 6% penalty. Remove principal amount only & file form 5329 for 2007 excess. Contact the trustee/custodian for their forms and procedure. JEVD Making the complex understandable.
david rigby Posted January 30, 2009 Posted January 30, 2009 Page 64 of IRS publication 590. http://www.irs.gov/pub/irs-pdf/p590.pdf I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Guest Anna Lynn Posted January 30, 2009 Posted January 30, 2009 Does anyone know of the IRS abating the Sec 4973 6% excise tax for excess contributions after due date of return? If so, what were the circumstances? Thank you.
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