Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I contributed 2K in 1998 to a Roth and then another 2K on 1-14-99 for 1999. At that time my original 2K had grown to $2349. Well times have been good and now I don't come close to qualifying for the 1999 contribution. I have sold my current holding in the Roth and would like to withdrawal the 2K for 1999 plus the earnings and pay the tax and penalty. My account is now at $7171.
I talked to my Tax Accountant about this, he "thinks" I should calculate the gain after 1-14-99, deduct the 2K for 1999 and split what's left over in two (half for 1998 and half for 1999). Then pay tax and penalty on the 1999 gain.
I can find confirmation on this anywhere.
Any help would be appreciated.

Print the post  


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.
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.