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Hi all,

I have a question that, on the surface, might sound a little shady. So just let me say up front that I'm an honest guy and ultimately, I'll do the right thing!

On to my question:

I've set up a Roth IRA for both my wife and for myself. Typically, our incomes fall within the AGI to qualify for a Roth IRA. However, this year, I liquidated some stock to purchase our first home. Doing so pushed my AGI over the Roth IRA limit. Prior to all this, I had already made my Year 2000 contribution to my Roth.

So my "shady" question is this: Who's gonna know? The IRS knows nothing of my Roth IRA. My online broker knows nothing about my AGI. I don't turn 59.5 (and therefore won't dip into my IRA) for another 30 years. So why not play dumb and blow it off?

I'm certain there's a reason, otherwise everybody and their brother would have a Roth, regardless of their AGI.

Just curious...

Thanks in advance for your responses.

Regards,

FortWayneFool
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No. of Recommendations: 2
Greetings, FortWayneFool, and welcome. You wrote:

I have a question that, on the surface, might sound a little shady. So just let me say up front that I'm an honest guy and ultimately, I'll do the right thing!

On to my question:

I've set up a Roth IRA for both my wife and for myself. Typically, our incomes fall within the AGI to qualify for a Roth IRA. However, this year, I liquidated some stock to purchase our first home. Doing so pushed my AGI over the Roth IRA limit. Prior to all this, I had already made my Year 2000 contribution to my Roth.

So my "shady" question is this: Who's gonna know? The IRS knows nothing of my Roth IRA.


Au contraire, mon ami. Your IRA custodian will report any and all IRA contributions to the IRS each year on Form 5498. If you make an excess contribution to your Roth IRA, the IRS will know it and will assess the penalty of 6% per annum each and every year until the excess is removed.

Regards..Pixy
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Take you year 2000 contribution and put in a non-deductible traditional IRA. You file an 8606 and you are save.
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