UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: Practical1 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76395  
Subject: At wits' end--6% penalty for Roth IRA?? Date: 3/21/2002 1:25 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Hi, I am very confused as to why my tax preparation software is telling me that I am subject to a 6% penalty for a Roth IRA contribution of $2000. My AGI in 2001 is definitely less than the AGI limit...I have looked on www.fool.com and elsewhere trying to figure this out, and I don't see how $2000 can be too much...I am eligible to open a Roth IRA, and $2000 < (total earned income - 401k contributions) as described below. This quote is from http://www.fool.com/money/allaboutiras/allaboutiras04.htm .

"An individual may make an annual nondeductible contribution to a Roth IRA that may not exceed the smaller of the maximum allowable annual IRA contribution or 100% of the individual's earned income for that year, minus the total of all contributions for that tax-year to all other individual retirement plans (other than Education IRAs) owned by that person."

Any help is greatly appreciated!
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement