Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next
Author: 549549 One star, 50 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121096  
Subject: Re: roth problem, no earned income, advice? Date: 2/7/2007 3:53 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Phil and fools,

Thank you for the reply.

In my ROTH there were gains on the 4000, in the neighborhood of 6.5% over the year. I suppose paying the 6% penalty, $240, makes it a wash, probably better and easier than going through the act of withdrawing funds, declaring the income and paying a penalty. I will have earned income in 2007, so I suppose leaving it alone makes the most sense.

In my wife's account the 4000 bought Johnson and Johnson's which for the year showed a slight loss. At first glance I thought it made sense to withdraw, pay the under 59 penalty and start fresh this year, BUT, $400, the 10% penalty, would be higher than the 6% excess contribution penalty.

Seems I should just leave both alone, make no contributions this year and pony up the $480 (240 for each account) and make some better investment decisions for 2007 ;-)

What do you think?

Thanks,Eric
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next

Announcements

Disclaimer:
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.
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement