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In today's Daily Dow column, TMFAnnC wrote (in part):

There are limits to what can be accumulated in an IRA . . . .

[[In addition, I seem to remember some kind of amnesty two or three years ago,
intended for those poor souls ;-) whose investments were so successful that they
unexpectedly busted the accumulation limits. So what are those limits?]]

Your memory is absolutely correct, Bob. The 1997 tax act threw out the so-called success penalties. The penalty on excess accumulations in an IRA were removed, as were the penalties on excess distributions.

In effect, an IRA can be as large as you want it to be without suffering the penalty.

I'll try and remember to leave Ann a note on this issue. But if you get ther first, please let her know about this.

And thanks for your keen eye.

TMF Taxes
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