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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Re: Roth IRA and Tax Return Date: 2/17/2000 8:43 PM
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I do not believe that you must indicate on your tax return that you have contributed to a Roth IRA. You do indicate if you contributed to a conventional IRA especially if some of the funds in the IRA are tax deductible and some are not. You also indicate if you withdrew money from Roth or conventional IRA.

Your broker may very well notify the IRS that you have made a contribution.

I do not see any indication that Roth IRA rules are strictly enforced at this time. However, the great fear is that IRS will decide to audit your account just as you retire and begin to take withdrawals. The worst would be if they decided it was unlawful and therefore earnings were not protected from income taxes in the years earned so you have to pay back taxes plus interest and penalties. This could mean no Roth IRA assets left. So its probably not worth taking chanches. Make an honest effort to follow the rules. Most of the time it will probably be OK.
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