No. of Recommendations: 0
I am going to make my 2001 contributions to my Roth IRA now as I have the money. However, I am curious as to what would happen if I were to exceed the AGI limit for 2001. I don't expect this to happen but nothing is impossible. Would I be able to "unwind the contribution and any earnings" as a result of that contrtibution?

Yes. You have various options if that happens, and you'll have plenty of time in 2002 to take them.

Is this the same for my child's education IRA contributions?

No, it's not. Unlike "real" IRAs, you can't change anything about an Ed IRA after December 31. However, there's a great loophole for you to take advantage of. The contributor to an Ed IRA doesn't have to have any income. Give the beneficiary the money and have him make the contribution, assuming it's a child with little or no income. That way you won't run into a problem with too much income to contribute and no time to do anything about it.

Phil Marti
Print the post  


The Retire Early Home Page
Discussion on accelerating retirement day.
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 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.