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!
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