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Financial Planning / Tax Strategies
|Subject: ROTH IRA||Date: 2/12/2000 6:20 PM|
|Author: kms98||Number: 28458 of 122503|
My daughter, who is a student, has no taxable income, and is claimed as a dependent on the tax returns submitted by my wife and myself, opened a ROTH IRA account in a mutual fund in 1998 with her savings.
Later, we came to know that she could not contribute to a ROTH IRA account because she had no taxable income in 1998. Accordingly, the ROTH IRA account was closed before April 15, 1999.
The mutual fund company sent atatement in Form 5498 for 1998 in which Box 4 gives the Fair Market Value of the Account as on 12/31/1998 and Box 9 gives the ROTH IRA contributions. There are no values in Boxes 1, 2, 3 7, 8 and 10.
A few weeks ago, the mutual fund company sent a statement
in Form 1099-R. Box 1 mentions the gross distributions and the code entered in Box 7 is 1J. Box 2b (Taxable amount not determined) is checked.
I would appreciate very much if you could please advise me as to what needs to be done now. Is it necessary to submit Form 8606? I must mention that the there was a gain when the ROTH IRA account was closed.
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