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Financial Planning / Tax Strategies


Subject:  Roth contribution above income Date:  11/27/2012  12:45 PM
Author:  crackdclaw Number:  116997 of 123001

A work colleague mentioned today that he will be making a contribution to his Roth IRA soon for 2012. As I'm aware his 2012 income exceeds the maximum income limit, (single, well over $125k) I asked why/how he was going to do this?

He replied he was not aware of the income limits and had openened the Roth account 6 years back and had made contributions each year. We discussed his income over the past six years and in the year he opened the account he was eligible, but 4 of the following 5 years his income exceeded the amount where a Roth IRA contribution was permissable.

Is there any check or balance within the IRS to notice? Any possible penalty in the future? His stance was that even though he now knows it'