No. of Recommendations: 2
Greetings, FortWayneFool, and welcome. You wrote:

I have a question that, on the surface, might sound a little shady. So just let me say up front that I'm an honest guy and ultimately, I'll do the right thing!

On to my question:

I've set up a Roth IRA for both my wife and for myself. Typically, our incomes fall within the AGI to qualify for a Roth IRA. However, this year, I liquidated some stock to purchase our first home. Doing so pushed my AGI over the Roth IRA limit. Prior to all this, I had already made my Year 2000 contribution to my Roth.

So my "shady" question is this: Who's gonna know? The IRS knows nothing of my Roth IRA.

Au contraire, mon ami. Your IRA custodian will report any and all IRA contributions to the IRS each year on Form 5498. If you make an excess contribution to your Roth IRA, the IRS will know it and will assess the penalty of 6% per annum each and every year until the excess is removed.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.