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Author: cstrohm Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121150  
Subject: Retirement Savings Contribution Credit questions Date: 1/23/2003 11:34 AM
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My daughter is probably only eligible for 2002's credit because of her income and marital status. (Suffice it to say we're a little tardy looking into this for 2002.)

Can she still take advantage of 2002's credit by makeing a contribution up through April 15, 2003?

If she makes her contribution to a Roth IRA, can she withdraw her own money from that IRA in the future and not run afoul of the fact that she took the Retirement Savings Contribution Credit back on her 2002 taxes?

Thanks in Advance.
Chuck
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Author: RoseSmeller One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 63182 of 121150
Subject: Re: Retirement Savings Contribution Credit quest Date: 1/23/2003 10:25 PM
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Can she still take advantage of 2002's credit by making a contribution up through April 15, 2003?

Yes, the credit is for contributions made for 2002.

You can see the form and instructions at:

http://www.irs.ustreas.gov/pub/irs-pdf/f8880.pdf

If she makes her contribution to a Roth IRA, can she withdraw her own money from that IRA in the future and not run afoul of the fact that she took the Retirement Savings Contribution Credit back on her 2002 taxes?

She'll lose the credit if she withdraws the money before April 15, 2003. If she withdraws it after that, she may lose the ability to get the credit for the following three years.

This is a great deal for those who qualify, and I'd definitely encourage her to take advantage of it.

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Author: cstrohm Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 63189 of 121150
Subject: Re: Retirement Savings Contribution Credit quest Date: 1/24/2003 9:43 AM
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That PDF looks like the information I was looking for. The Gov't threw in the kicker that if you were a full-time student for 5 months of the year then you aren't eligible. That disqualifies her right away.

Thanks for the info.


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