Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: TerryMcK Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121095  
Subject: F/UP TMFPMarti, IRA Excess Contrib Date: 3/1/2008 10:00 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Phil, the following was in your response to my question on the IRA excess contribution (due to no earned income in 2007).

Call the IRA custodian(s) and tell them that you need to withdraw the contributions and earnings. They'll take it from there.

The earnings, if positive, will be 2007 income which you must report on your 2007 return. Positive earnings are taxable income on your 2007 return. If either of you is under 59 1/2 at the time positive earnings are distributed there will be a 10% premature distribution penalty on that spouse's earnings.

You will not receive a 2007 1099-R. Period. In January 2009 you will receive a 2008 1099-R showing the distribution. We'll worry about that at that time.

Once you find out the amount of earnings you're withdrawing get back to us, and we can figure how how to trick TT into putting the right numbers in the right places.

Phil


I made the withdrawal from both Roth IRAs at Fidelity. There was a $5K deposit in each in 2007. The result was a distribution of $4885 from one (loss) and $5443 from the other (gain). When I first called Fidelity they told me that I would get a 1099-R. However when I went to the office to do the transaction they told me that I wouldn't and I would have all the info I needed to file this with my 2007 return.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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