DEADLINE FOR REMOVING IRA EXCESS CARRY-BACK CONTRIBUTION

[Guest AFRICA6796]

If an IRA owner makes a year 2000 excess contribution to his IRA this year (2001) , what is the deadline for removal?

According to my colleague, the deadline for removing this contribution is April 15 year 2002. However, I have been told differently.

My colleague cites IRC Section 408(d)(4) which states that the taxpayer has until the tax filing deadline for the year IN WHICH ("paid during the taxable year" /"for such taxable year") the excess was made, and not the year FOR WHICH it was made, to make a correcting distribution.

However, when I contacted a very reputable pension institution, they referred to IRC 219(f)(3), which states that the contribution is "deemed " to be made FOR the year for which it is designated. When challenged my colleague stated that 219(f)(3) only relate to the issue of the timing of purposes of taking a deduction for the contribution. My colleague states that a very reputable individual who authors books on the subject and has several qualifications, in addition to being an ERISA attorney backs her response.