|
The Motley Fool Discussion Boards
|
Previous Page | |
|
Investing/Strategies / Retirement Investing |
||
|
URL:
http://boards.fool.com/roth-excess-contribution-penalties-12443613.aspx
|
||
| Subject: Roth (excess contribution) Penalties | Date: 4/20/2000 9:04 PM | |
| Author: joeprince | Number: 21413 of 72499 | |
|
I recently discovered that my contribution to the Roth was well over the allowable (The Motley Fool's Investment Tax Guide 2000). For the past 3 years, I have annually contributed $2000.00. My wife and I have been filing separate returns, therefore, I have excessively contributed $6000.00. My wife's accountant states that if I withdraw my account, I will have to pay a 6% penality on the $6000.00 contributed and a 10% penality will be applied to any gains because of the early withdrawal violation. My questions are as follows? 1) Can I leave these funds in the Roth until early withdrawal will not be a factor (say 8 years), thereby avoiding the 10% penality to be accessed to any capital gains? 2) If indeed 1) is permissable, will I only be penalized 6% of the invested $6000.00 at the end of 8 years? 3) Can I continue to contribute to the Roth knowing full well that I will only be penalized 6% for overpayment if I allow the Roth to mature? Thank You |
||
| Copyright 1996-2013 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us | ||