I made a Year 2000 Roth contribution, had it returned because I didn't

[Guest irr7342]

I am a retired individual who contributed $2,000 (for tax year 2000) to my Roth IRA on 1/18/00 thinking I would work at some point during the year. On 1/31/00, I realized I wasn't going to be able to work due to my wife's health and so I had that contribution reversed on 1/31/00 (distributed back to me as a Return Of Excess Contribution). As it turns out, I was able to find time to get a part time job in 2000, earned some money and now want to make that year 2000 contribution again but the service dept for the trustee on my account says I'm now ineligible to make a year 2000 contribution.

This just doesn't make any sense to me because I had that contribution reversed. As far as my account balance is concerned, I haven't made a year 2000 contribution.

Your advice on these matters would be greatly appreciated.

[BPickerCPA]

Off the top of my head, I can't think of any reason why it can't be done. Perhaps the trustee's computer already shows the contribution (and not the reversal), so it is saying that you've already met the limit.

You may want to sit down with a qualified pro to get a researched answer. If necessary, open the 2000 Roth with another trustee.

[John G]

I also believe you can do this. But, with complicated IRA issues avoid the front counter staff of any bank, brokerage or mutual fund and ask for the back desk experts where they are more likely to understand the question and have the appropriate training.

I agree with Barry, the simplest solution is to proceed with another custodian. Keep careful records in case the IRS later questions the transactions.

[Guest Taxwoman]

As someone who works in the retirement plans back-office of a brokerage firm-.....

The custodian has no basis for telling you that you cannot make that contribution. You must bring to their attention the fact that the first contribution was removed via 'return of excess contribution'. If they insist, cite IRS publication 590 and IRC 219(f)(3).

If they still insist on showing their ignorance, let us know