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JeffdFool: "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 will offer you another possibility. Why not recharacterize '99 contribution as a regular IRA (which may or may not be deductible, but you were going to pay taxes for the contribution when it was a Roth, so it should be largely irrelevant.

See a thread started within the last 3 days by UUinMN on this board or the IRA Dilemma thread started today on the Retirement board.

Regards, JAFO
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